Question: The expected return and standard deviation for two stocks are listed below. Calculate expected return for a portfolio that is weighted 80% in stock A

The expected return and standard deviation for two stocks are listed below. Calculate expected return for a portfolio that is weighted 80% in stock A and 20% in stock B if the RHO between the two is -.40

Stock A:

Estimated Return= 17%

Standard deviation = 14%

Stock B:

Estimated Return = 15%

Standard deviation = 14%

A. 16%

B. 16.6%

C. 10.41%

D. 15.42%

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