Stock a has an expected return of 10 and a standard


Stock A has an expected return of 10% and a standard deviation of 40%. Stock B has an expected return of 20% and standard deviation of 50%. The correlation coefficient between Stocks A and B is 0.5. What are expected return and standard deviation of a portfolio invested 40% in Stock A and 60% in Stock B? a. E(rp)? b. Var(rp)?

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Finance Basics: Stock a has an expected return of 10 and a standard
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