Stock A has an expected return of 15% p.a. and Stock B also has an expected return 15% p.a.
The standard deviation of return for stock A is 40% and the standard deviation of return for B is 30%.
(a) Using the above information and assuming the correlation between the returns is ρ.00 compute
* the expected return and
* standard deviation of return on a portfolio where you have $50 invested in stock A and $50 invested in stock B. Show your working.