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Suppose Ford Motor stock has an expected return of 20% and a volatility of 41%?, and Molson Coors Brewing has an expected return of 10% and a volatility of 29%. If the two stocks are? uncorrelated.

a. What is the expected return and volatility of a portfolio consisting of 67% Ford Motor stock and 33% of Molson Coors Brewing? stock? Expected return is ____% round to two decimal

b. Given your answer to (a?), is investing all of your money in Molson Coors stock an efficient portfolio of these two? stocks?

c. Is investing all of your money in Ford Motor an efficient portfolio of these two? stocks?

d. The volatility of the portfolio is ____% round to two decimal places.

Financial Management, Finance

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