The expected return on Big Time Toys is 9 and its standard deviation is 20 The expected return on Chemical Industries is 8 and its standard deviation is 25 a Suppose the correlation coefficient for the two stocks returns is 2 What are the expected return and standard deviation of a portfolio with 30 invested in Big Time Toys and the rest in Chemical Industries (Round your answers to 1 decimal places ) Portfolio's expected return Portfolio's standard deviation b If the correlation coefficient is 7, recalculate the portfolio expected return and standard deviation, assuming the portfolio weights are unchanged (Round your answers to 1 decimal places ) Portfolio's expected return Portfolio's standard deviation

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Question: The expected return on Big Time Toys is 9% and its standard deviation is 20%. The expected return on Chemical Industries is 8% and its

The expected return on Big Time Toys is 9% and its standard deviation is 20%. The expected return on Chemical Industries is 8% and its standard deviation is 25%.

a.	Suppose the correlation coefficient for the two stocks returns is .2. What are the expected return and standard deviation of a portfolio with 30% invested in Big Time Toys and the rest in Chemical Industries? (Round your answers to 1 decimal places.)

	Portfolio's expected return %

	Portfolio's standard deviation %

b.	If the correlation coefficient is .7, recalculate the portfolio expected return and standard deviation, assuming the portfolio weights are unchanged. (Round your answers to 1 decimal places.)

	Portfolio's expected return %

	Portfolio's standard deviation

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