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Business, 18.12.2019 05:31 haleyllevsen

Suppose the expected returns and standard deviations of stocks a and b are e(ra) = .096, e(rb) = .156, σa = .366, and σb = .626.a-1. calculate the expected return of a portfolio that is composed of 41 percent stock a and 59 percent stock b when the correlation between the returns on a and b is .56. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)expected return %a-2. calculate the standard deviation of a portfolio that is composed of 41 percent stock a and 59 percent stock b when the correlation between the returns on a and b is .56. (do not round intermediate calculations and enter your answer as a percent rounded 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 stocks a and b is −.56. (do not round intermediate calculations and enter your answer as a percent rounded 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) = .096, e(rb) = .15...
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