What is the expected return and volatility of a portfolio

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Reference no: EM131530485

Suppose Ford Motor stock has an expected return of 17% and a volatility of 38%?, and Molson Coors Brewing has an expected return of 11% and a volatility of 31%. If the two stocks are? uncorrelated,

a. What is the expected return and volatility of a portfolio consisting of 80% Ford Motor stock and 20% of Molson Coors Brewing? stock?

The expected return of the portfolio is ??% (Round to two decimal places.)

The volatility of the portfolio is ??%

b. Given your answer to ?(a?), is investing all of your money in Molson Coors stock an efficient portfolio of these two? stocks? (Select the best choice below)

A. No

B. Yes

C. Cannot determine from the given information

c. Is investing all of your money in Ford Motor an efficient portfolio of these two? stocks? (Select the best choice below)

A. No

B. Cannot determine from the given information

C. Yes

Reference no: EM131530485

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