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Stock A has an expected return of 20 percent and a standard deviation of 38 percent....

  1. Stock A has an expected return of 20 percent and a standard deviation of 38 percent. Stock B has an expected return of 26 percent and a standard deviation of 42 percent. Calculate the expected return and standard deviations for portfolios with the 6 different weights shown below assuming a correlation coefficient of 0.28 between the returns of stock A and B.

                                   

WA      WB

                                   

1.00     0.00

                                    0.80     0.20

                                    0.60     0.40

                                    0.40     0.60

                                    0.20     0.80

                                    0.00     1.00

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

ANSWERS ARE IN %, ROUNDED TO 2 DECIMALS

jeff jeffy answered 2 years ago
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