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2. Consider investing money into two stocks. Suppose they have expected returns next year of 10% and 20%, respectively. Assume further that they have standard

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2. Consider investing money into two stocks. Suppose they have expected returns next year of 10% and 20%, respectively. Assume further that they have standard deviation of 15% and 25%, with a correlation of 50%. a. What is the expected return on the equal-weighted portfolio? b. How do you get a portfolio with 18% return and what is the risk of the portfolio? c. How do you get a portfolio with 100% return and what is the risk of the portfolio? d. Suppose the two stocks have realized returns of 30% and 10% next year. What is the realized return of the equal-weighted portfolio? And What will be the value of year wealth if you started with $100

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