Problem:
Ebenezer Scrooge has invested 60% of his money in share A and the remainder (40%) in share B. He assesses their prospects as follows:
Required:
Question 1: What are the expected return and standard deviation of returns on his portfolio?
Question 2: How would your answer change if the correlation coefficient were 0 or -0.5?
Note: Provide thorough explanation of the given question.