In: Finance
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?