1)An investor is considering investing an equally weighed portfolio of two (2) stocks namely X and Y. You have been given the following information about these two stocks in terms of risk, return and correlation, as shown below: 2)Based on this calculate a) portfolio return b) portfolio risk c.)Compare portfolio risk with the individual stock risks and identify the benefit of the diversification of the portfolio.

Stock	X	Y
E(R)	10%	8%
	20%	15%
Correlation between A and B	-0.25