Stock Expected Return Standard Deviation A 16% 20% B 12% 15% Correlation AB 0.3 The expected return of a portfolio with 75% in A and 25% in B would be: 13% 5% 15% 28% Stock Expected Return Standard Deviation 18% 20% B 12% 15% Correlation AB 0.3 Consider a portfolio with 75% invested in Stock A and 25% invested in Stock B. If the correlation between stock A and stock B increased to 0.7, the overall standard deviation for the portfolio would: Stay the same Equal o Fall Rise Use the following data: Stock Expected Return Standard Deviation A 18% 20% B 12% 15% Correlation AB 0.3 Assume the portfolio is half in stock A and half in stock B. If the correlation between stock A and Stock B declined to 0, the expected return for the portfolio would: O Equal the risk-free rate Stay the same Rise Fall