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The expected return on Big Time Toys is 10 percent and its standard deviation is 17 percent

Finance Nov 06, 2020

The expected return on Big Time Toys is 10 percent and its standard deviation is 17 percent. The expected return on Chemical Industries is -1 percent and its standard deviation is 20 percent. Suppose the correlation coefficient for the two stocks' returns is 0.8. What are the expected and standard deviation of a portfolio with 55 percent invested in Big Time Toys and the rest in Chemical Industries?
 
Enter your answers as percentages rounded to 2 decimal places. Do not include the percentage sign in your answers.
 
 
E(rp) =  
 
Std. Dev. =  

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