Question: The table below summarizes the expected returns and standard deviations of stock A and B. The correlation coefficient between the two stocks is 0.45. An

The table below summarizes the expected returns and standard deviations of stock A and B. The correlation coefficient between the two stocks is 0.45. An investor considers an investment portfolio with $6000 invested in stock A and $4000 invested in stock B. + Stock A Expected Return Standard Deviation 12% 22% 8% 18% Answer the following questions (8 marks) QN oW What is the portfolio's expected return? (2 marks) What is the covariance between stock A and B? (2 marks) What are the portfolio's variance and standard deviation? (2 marks) What is the portfolio's expected Sharpe ratio if the interest rate is 4%7? (2 marks)

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