1. Consider the following probability distribution for stock ABC and XYZ: Scenario Probability Return of ABC Return of XYZ CON 2 3 0.3 0.5 0.2 0.07 0.11 -0.16 -0.09 0.14 0.26 (a) Calculate the expected return of stocks ABC and XYZ. (b) Calculate the variance and standard deviation of stocks ABC and XYZ. (c) Calculate the covariance and correlation of stocks ABC and XYZ. (d) Calculate the expected return and standard deviation for the following portfolios: i. All in XYZ ii. 20% in ABC and 80% in XYZ. iii. 40% in ABC and 60% in XYZ. iv. 60% in ABC and 40% in XYZ. v. 80% in ABC and 20% in XYZ. vi. All in ABC. (e) Go as far as you can to find the numerical value of the portfolio weight that achieves the minimum possible standard deviation. (f) Draw the investment opportunity set, and show the efficient frontier. (g) Suppose that the correlation between ABC and XYZ were equal to -1, but their expected returns and standard deviations stay the same. What portfolio weights should you choose in order to eliminate all the risk in your portfolio