16. A portfolio is composed of two stocks, A and B. Stock A has an expected return of 12% while stock B has an expected return of 15%. Stock A has a standard deviation of return of 5% while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is 0.8. Stock A comprises 40% of the portfolio while stock B comprises 60% of the portfolio. [20 points total] Find the expected return for the portfolio. [10 pts] Find the variance of the portfolio. [10 points]