Consider the following 6 months of returns for 2 stocks and a portfolio of those...
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Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? Note: The portfolio is composed of 50% of Stock A and 50% of Stock B. (Click on the following icon in order to copy its contents into a spreadsheet.) Feb Mar Apr May Jan 3% Stock A 6% - 5% 4% - 1% Stock B - 1% - 4% 7% - 2% 3% Portfolio 1% 1% 1% 1% 1% Jun 5% - 3% 1%
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