15% and their correlation coefficient is .5. What is the expected return and standard Deviation of a 5050 combination of the two Stocks? What if you

15% and their correlation coefficient is .5. What is the expected return and standard Deviation of a 5050 combination of the two Stocks? What if you wante som othe re d e r turn? Weight the two stocks differently! What if thestocks had a diffe nt corre re lation coe fficie nts? Expected Expected What happe whe weadd a THI RD ns n stock? Take a combination of stock C with the 5050 Portfolio we constructed earlier. What about othe com r binations?

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