1. Nancy has a portfolio of two stocks. Stock A has an expected return of 7% and stock B has an expected return of 10%. Her funds are allocated with 54% in stock A and 46% in stock B. What is the portfolio expected return?
8.38%
8.92%
9.46%
10.00%
10.54%
2. Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of a return below 15%?
2.5%
16%
68%
13.5%
84%