What is the expected return and volatility of a portfolio


Suppose Ford Motor stock has an expected return of 19 % and a volatility of 38 %, and Molson Coors Brewing has an expected return of 11 % and a volatility of 32 % . If the two stocks are uncorrelated.

a. What is the expected return and volatility of a portfolio of 83 % Ford Motor stock and 17 % of Molson Coors Brewing stock?

The expected return of the portfolio is______ %. (Round to two decimal places.)

The volatility of the portfolio is ________ %. (Round to two decimal places.)

b. Given your answer to (a), is investing all of your money in Molson Coors stock an efficient portfolio of these two stocks? (Select the best choice below.)

A.Yes.

B. Cannot determine from the given information.

C. No.

c. Is investing all of your money in Ford Motor an efficient portfolio of these two stocks? (Select the best choice below.)

A.Yes.

B. No.

C. Cannot determine from the given information.

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Financial Management: What is the expected return and volatility of a portfolio
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