Given the Returns of Two Stocks J and K in the Table

question 35

Multiple Choice

Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected return and standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years.

• A) 10.6% and 1.34%
• B) 10.6% and 1.79%
• C) 10.6% and 1.16%
• D) 14.3% and 2.02%

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