1. You are building a portfolio with stock B and stock C. Stock B can return either -10% or 30% with equal probabilities, and stock C can return either -20% or 40% with equal probabilities. You have $100 and you decide to short sell $100 of stock B and buy $200 stock C. The correlation between Stock B and stock C's return is 0.8. a. What is stock B's expected return? b. What is stock C's volatility? C. What is your portfolio's expected return? d. What is your portfolio's volatility? e. Is your portfolio efficient? f. If you want to build an efficient portfolio, should you ever take a short position in stock C? First answer yes or no, then briefly explain. 1. You are building a portfolio with stock B and stock C. Stock B can return either -10% or 30% with equal probabilities, and stock C can return either -20% or 40% with equal probabilities. You have $100 and you decide to short sell $100 of stock B and buy $200 stock C. The correlation between Stock B and stock C's return is 0.8. a. What is stock B's expected return? b. What is stock C's volatility? C. What is your portfolio's expected return? d. What is your portfolio's volatility? e. Is your portfolio efficient? f. If you want to build an efficient portfolio, should you ever take a short position in stock C? First answer yes or no, then briefly explain