Question: This problem asks you to compute expected return, variance and the standard deviation of returns for a portfolio of two stocks. You are an investor

 This problem asks you to compute expected return, variance and the

This problem asks you to compute expected return, variance and the standard deviation of returns for a portfolio of two stocks. You are an investor and own a portfolio consisting of 2 stocks. The percentage of the portfolio that is invested in the first stock is 55% and the percentage of the portfolio that is invested in the second stock is 45%. The risk-free rate is 1.33%, the expected return for the first stock is 9.30% and the expected return for the second stock is 8.20%. The standard deviation of the first stock is 11.37% and the standard deviation of the second stock is 18.94%. The correlation between the stocks is 46.00%. What is the expected return on the portfolio? Write as a percentage to two decimal places %. What is the variance of the portfolio? Write the answer as a number to four decimal places What is the standard deviation of the portfolio. Write the answer as a percentage to two decimal places %

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