1. Suppose that we have three stocks with the following parameter values. Expected Standard Correlations of Returns Rm Deviation "m -__ (a) Find the expected return and standard deviation of a portfolio with 25% in stock 1, 5D% in stock 2, and 25% in stock 3. (h) For the portfolio in part [a], nd the covariance of its return with the return of the equallyr weighted portfolio of stock 1 and stock 2. [Equal weighting for a two-asset portfolio means that the weights are 5% and 50%.) (c) Suppose the risk-free rate is 5%. Someone claims that the equally weighted portfolio of stock 1, stock 2, and stock 3 is the tangenCy portfolio of these three stocks. Do you believe his claim? Justify your