1.2 (5 points) Two stocks have the following expected returns and standard deviations Stock Expected return Standard Deviation 10% 20% 10% 20% Consider a portfolio made up of 50% of stock X and 50% of stock Y. (a) What is the expected return on this portfolio? (b) Suppose that the correlation between the two expected returns is equal to zero. What is the variance and standard deviation of the portfolio return? (c) Consider the following statement: Since the expected returns and standard deviations of the two stocks are exactly the same and their returns are not correlated with each other, it does not make sense to combine the two of them in a portfolio. Do you agree with this statement? Explain your