1. [Portfolio Return and Risk] (30 pts)

Return and risk characteristics of stocks #1 and #2 are given in the following table:

Stock	Expected rate of return	Expected risk level
#1	10%	3%
#2	15%	5%

Calculate the expected returns and expected standard deviations of a two-stock portfolio in which stock #1 has a weight of 60% under the following conditions. (20 pts)

Conditions	Correlation (R1 , R2)	Expected portfolios return	Expected portfolios risk level
A	1.00
B	0.75
C	0.25
D	0.00
E	-0.25
F	-0.75
G	-1.00