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In: Finance

Stocks A and B have the following? returns:         Stock A        Stock B 1         0.11        &nb

Stocks A and B have the following? returns:

        Stock A        Stock B
1         0.11           0.05
2         0.06            0.02
3        0.15            0.05
4        -0.04           0.02
5        0.08            -0.04

a. What are the expected returns of ?stock A and Stock B?

b. What are the standard deviations of the returns of stock A and stock B?

c. If their correlation is 0.43?, what is the expected return and standard deviation of a portfolio of 55?% stock A and 45?% stock? B?

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jeff jeffy answered 2 years ago
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