1. A $1 million portfolio has invested $400,000 in fund A and remainder in fund B. The funds have the following characteristics: Stock Expected Return Standard Deviation A 10% 20% B 15% 30% The correlation coefficient between the two funds returns is .60 a. Compute the portfolio expected return. b. Compute the portfolio standard deviation. c. Fund C is also available with 12% return, 30% standard deviation and a .10 correlation with fund B. Should the portfolio manager replace fund A with fund C