Question: THANK YOU SO MUCH!!!!!! (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is

THANK YOU SO MUCH!!!!!!
(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has learned in business School. Specifically, she is evaluating an investment in a portfolio comprised of two firms' common stock. She has collected the following information about the common stock of Firm A and Fimm B: B a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to +1. d. Answer part a where the correlation between the two common stock investments is equal to - 1. e. Using your responses to questions a-d, describe the relationship between the correlation and the risk and return of the portfolio. a. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.50, then the expected rate of return in the portfolio is %. (Round to two decimal places.) Data Table Standard Deviation 0.18 0.25 Enter your answer in the answer box and then cli Expected Return 0.16 0.19 0.50 Firm A's common stock Firm B's common stock Correlation coefficient ? parts remaining Answer (Click on the icone in order to copy its contents into a spreadsheet.) (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has learned in business School. Specifically, she is evaluating an investment in a portfolio comprised of two firms' common stock. She has collected the following information about the common stock of Firm A and Fimm B: B a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to +1. d. Answer part a where the correlation between the two common stock investments is equal to - 1. e. Using your responses to questions a-d, describe the relationship between the correlation and the risk and return of the portfolio. a. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.50, then the expected rate of return in the portfolio is %. (Round to two decimal places.) Data Table Standard Deviation 0.18 0.25 Enter your answer in the answer box and then cli Expected Return 0.16 0.19 0.50 Firm A's common stock Firm B's common stock Correlation coefficient ? parts remaining Answer (Click on the icone in order to copy its contents into a spreadsheet.)
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