What are the standard deviations of the returns of stock a


Stocks A and B have the following? returns:

        Stock A        Stock B

1         0.11           0.05

2         0.06            0.02

3        0.15            0.05

4        -0.04           0.02

5        0.08            -0.04

a. What are the expected returns of stock A and Stock B?

b. What are the standard deviations of the returns of stock A and stock B?

c. If their correlation is 0.43?, what is the expected return and standard deviation of a portfolio of 55?% stock A and 45?% stock? B?

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