1) Suppose that an investor considers investing his/her money in two stocks A and B and also in a riskless T-Bill. The expected return of Ais 25% and expected variance of A is 9%. The expected return of Bis 18% and expected variance of Bis 4%. The riskless return of the T-Bill is 10%. The correlation coefficient between A and B is 0.5. The correlation coefficient between the stock A and T-Bit is 0.2 and the correlation coefficient between stock B and the T-Bill is -0.3. Given this a) Assume that this investor invests 40% of his/her money in stock A, invests 40% of his/her money in stock B and invests the rest of money in T-Bills. What will then be the expected return and the expected variance of that portfolio