1. You are presented with the following stocks: The three stock correlation coefficients are :1,2=.20;2,3=.10;1,3=.50 In addition the investor borrows $2,000 at the risk-free rate of 4%. a. Calculate the portfolio's expected return and standard deviation. b. Would you consider replacing the third stock with a new one, same expected return, but 25% standard deviation and correlation of zero with stock one and two? Show your argument numerically. 1. You are presented with the following stocks: The three stock correlation coefficients are :1,2=.20;2,3=.10;1,3=.50 In addition the investor borrows $2,000 at the risk-free rate of 4%. a. Calculate the portfolio's expected return and standard deviation. b. Would you consider replacing the third stock with a new one, same expected return, but 25% standard deviation and correlation of zero with stock one and two? Show your argument numerically