The expected return on Big Time Toys is 7 percent and its standard deviation is 20 percent.

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The expected return on Big Time Toys is 7 percent and its standard deviation is 20 percent. The expected return on Chemical Industries is -4 percent and its standard deviation is 22 percent. Suppose the correlation coefficient for the two stocks' returns is 0.6. What are the expected and standard deviation of a portfolio with 45 percent invested in Big Time Toys and the rest in Chemical Industries?

Enter your answers as percentages rounded to 2 decimal places. Do not include the percentage sign in your answers.

E(rp) =

Std. Dev. =

Posted Date: May 18, 2024 11:09 AM

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The expected return on Big Time Toys is 7 percent and its standard deviation is 20 percent.

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