Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.65 under the conditions given below. Do not round intermediate calculations. Round your answers to four decimal places.
w1 = 1.00
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
w1 = 0.75
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
w1 = 0.55
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
w1 = 0.25
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
w1 = 0.10
Expected return of a two-stock portfolio:
Expected standard deviation of a two-stock portfolio:
Choose the correct riskreturn graph for weights from parts (a) through (e) when ri,j = -0.65; 0.00; 0.65.
The correct graph is -Select-graph Agraph Bgraph Cgraph DItem 11 .
A.
B.
C.
D.
Answer & Explanation
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