2. You are considering an investment in Stock A and Stock B. Your security analyst has estimated the returns on these two stocks as follows: The variance of returns of Stock A is 0.005025 and the standard deviation of returns of Stock A is 0.070887 (or 7.0887% ). The variance of returns of Stock B is 0.001984 and the standard deviation of returns of Stock B is 0.044542 (or 4.4542% ). Use the variances and standard deviations provided for further computation, when needed. a) Find the expected return on each stock. Use at least six decimal places when computing (b), (c), and (d) below to minimize rounding errors. b) Find the covariance and correlation between the returns on Stock A and Stock B. c) Assume that you form a portfolio consisting of Stock A and Stock B. You invest $8,000 in Stock A and $12,000 in Stock B. i. Find the weight of each stock in the portfolio. ii. Find the expected return and standard deviation of returns on the portfolio consisting of Stock A and Stock B