1) Assume you purchase 50 shares of stock I and 50 shares of stock II. What is the expected return of this portfolio and what is its standard deviation?

\begin{tabular}{lclll} \cline { 2 - 5 } FinancialSecurity & Expectedreturn & & PricePerShare & AB(Correlation) \\ \cline { 2 - 5 } Type I & 12% & 30% & $100 & 0.8 \\ Type II & 9% & 20% & $75 & \\ T-Bill & 2% & 0% & & \\ \hline \end{tabular} \begin{tabular}{lclll} \cline { 2 - 5 } FinancialSecurity & Expectedreturn & & PricePerShare & AB(Correlation) \\ \cline { 2 - 5 } Type I & 12% & 30% & $100 & 0.8 \\ Type II & 9% & 20% & $75 & \\ T-Bill & 2% & 0% & & \\ \hline \end{tabular}