Stock A’s expected return and standard deviation are E[rA] = 8% and σA= 15%, while stock...
Stock A’s expected return and standard deviation are E[rA] = 8% and σA= 15%, while stock B’s expected return and standard deviation are E[rB] = 12% and σB= 21%. 
a. Determine the expected return and standard deviation of the return on a portfolio with weights wA=.35 and wB=.65 for the following alternative values of correlation between A and B: pAB=0.6 and pAB= -0.4.
b. Assume now that pAB=-1.0 and find the portfolio p of stocks A and B that has no risk (i.e. such thatσp=0). Can you do the same when pAB=1.0? If not, why? If so, find that portfolio.
c. Finally, assume that pAB=0. Find the standard deviations of portfolios with the following expected returns: 8%, 9%, 10%, 11%, 12%, 13%, 14% and 15%. Plot the expected return—standard deviation pairs on a graph (with the standard deviations on the horizontal axis, and the expected returns on the vertical axis).
【would you please help me answer the question b) and c) ？Thank you】
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Stock A’s expected return and standard deviation are E[rA] = 8%
and σA= 15%, while stock...
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .088,...
Suppose the expected returns and standard
deviations of Stocks A and B are E(RA) = .088, E(RB) = .148, σA =
.358, and σB = .618.
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .088, E(RB) = .148, 0A = .358, and 0B = .618. a-1. Calculate the expected return of a portfolio that is composed of 33 percent A and 67 percent B when the correlation between the returns on A and...
Stocks A and B each have an expected return of 15%, a standard deviation of 17%,...
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6. Calculating a beta coefficient for a single stock Aa Aa E Suppose that the standard...
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Suppose there are three assets: A, B, and C. Asset A’s expected return and standard deviation are 1 percent and 1 percent. Asset B has the same expected return and standard deviation as Asset A. However, the correlation coefficient of Assets A and B is −0
Suppose there are three assets: A, B, and C. Asset A’s expected return and
standard deviation are 1 percent and 1 percent. Asset B has the same expected
return and standard deviation as Asset A. However, the correlation coefficient of
Assets A and B is −0.25. Asset C’s return is independent of the other two assets.
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Suppose the expected returns and standard
deviations of Stocks A and B are E(RA) = .088, E(RB) = .148, σA =
.358, and σB = .618.
Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .088, E(RB) = .148, 0A = .358, and 0B = .618. a-1. Calculate the expected return of a portfolio that is composed of 33 percent A and 67 percent B when the correlation between the returns on A and...
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1. The two-asset case The expected return for asset Als 5.50% with a standard deviation of 3.00%, and the expected return for asset Bis 5.25% with a standard deviation of 6.00% Based on your knowledge of efficient portfolios, fill in the blanks in the following table with the appropriate answers. Proportion of Portfolio in Security A Proportion of Portfolio in Security B W Expected Portfolio Return Standard Deviation 0, (%) Case I(PAR -0,4) WA TP Case II (PAN Case III(PAR...
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