Expected return-standard deviation and tandard deviation

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Reference no: EM131059115

Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .092, E(RB) = .152, σA = .362, and σB = .622. a-1. Calculate the expected return of a portfolio that is composed of 37 percent A and 63 percent B when the correlation between the returns on A and B is .52. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return %

a-2. Calculate the standard deviation of a portfolio that is composed of 37 percent A and 63 percent B when the correlation between the returns on A and B is .52. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Standard deviation %

b. Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on A and B is −.52. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) S

tandard deviation %

Reference no: EM131059115

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