Expected return and standard deviation of holding portfolio

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Reference no: EM131087935

Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected return and standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years: Stock J: 2010=10%, 2011=12%, 2012= 13%, 2013=14% Stock K: 2010=9%, 2011= 8%, 2012= 10%, 2013= 11%

A. 10.7% and 1.50%

B. 10.6% and 1.16%

C. 10.6% and 1.79%

D. 14.3% and 2.02%

Reference no: EM131087935

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