Business, 18.11.2019 20:31 Ashley2466

Suppose the expected returns and standard deviations of stocks a and b are e(ra) = .088, e(rb) = .148, σa = .358, and σb = .618. a-1. calculate the expected return of a portfolio that is composed of 33 percent a and 67 percent b when the correlation between the returns on a and b is .48. (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 33 percent a and 67 percent b when the correlation between the returns on a and b is .48. (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 −.48. (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16)) standard deviation %

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Suppose the expected returns and standard deviations of stocks a and b are e(ra) = .088, e(rb) = .14...

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