= 1. Given two stocks with E(ri) 10%, E(r2) 15%, 01 = 20%, 02 = 25%. Calculate the expected returns and standard deviations of a two-stock portfolio under each of the following conditions: (a) w1 = 0.60, W2 = 0.40, p= 0.5; (5 marks) (b) W1 0.50, W2 0.50, p= 0; (5 marks) (c) W1 = 0.40, W2 0.60, p= -0.5. (5 marks) Here wi is the weight of stock i in the portfolio, p is the correlation between two stock returns. Total: 15 marks