In: Finance
What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.43, what is the expected return and standard deviation of a portfolio of 58% stock A and 42% stock B? a. What are the expected returns of the two stocks?
Stock A Stock B
1 0.09 0.06
2 0.04 0.02
3 0.15 0.03
4 -0.04 0.01
5 0.09 -0.05