Question: Stocks A and B have expected returns 8% and 10%, and standard deviation of returns of 20% each. If they are uncorrelated, then the portfolio

Stocks A and B have expected returns 8% and 10%, and standard deviation of returns of 20% each. If they are uncorrelated, then the portfolio variance is given by w_A²_A² + w_B²_B². What are the portfolio mean return and risk (standard deviation) if the weights are 60-40 (in favour of A)?

Question 3 options:

	8.8%, 14%
	9.2% 20%
	9.2%, 14%
	8.8%, 20%

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