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E(R1) = 0.13 E(R2) = 0.15 E(σ1) = 0.01 E(σ2) = 0.03 Calculate the expected returns...

E(R1) = 0.13
E(R2) = 0.15
E(σ1) = 0.01
E(σ2) = 0.03

Calculate the expected returns and expected standard deviations of a two-stock portfolio in which Stock 1 has a weight of 80 percent under the conditions given below. Do not round intermediate calculations. Round your answers for the expected returns of a two-stock portfolio to three decimal places and answers for expected standard deviations of a two-stock portfolio to four decimal places.

  1. r1,2 = 1.00

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

  2. r1,2 = 0.60

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

  3. r1,2 = 0.10

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

  4. r1,2 = 0.00

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

  5. r1,2 = -0.10

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

  6. r1,2 = -0.60

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

  7. r1,2 = -1.00

    Expected return of a two-stock portfolio:

    Expected standard deviation of a two-stock portfolio:

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