12. Portfolio Standard Deviation Suppose the expected returns and standard deviations of Stocks A and B are E(RA)-, 11, E(Ra) = 13, .-39, and ,-76 Hints: For portfolio with two assets, Portfolio Return: E(Rp) WAER+WaE(RB) Portfolio Variance : -W + W + 2 WawapapoAOn Calculate the expected return and standard deviation of a portfolio that is composed of 35 percent A and 65 percent B when the correlation between the returns on A and B is 0.5. Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on A and B is -0.5. How does the correlation between the returns on A and B affect the standard deviation of portfolio? a. b. the c