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?