2b. Calculate the expected return and standard deviation of a portfolio made up of 50% stock C and 50% stock D if the correlation is -0.75.

Probability	Stock C	Weighted Return	Expected Return	Deviation	SQd Dev.	Prob * Sqrd Deviaiton
0.3	-10%	-3.00%	12.50%	-22.50000%	0.0506	0.0151875
0.5	15%	7.50%	12.50%	2.50000%	0.0006	0.0003125
0.2	40%	8.00%	12.50%	27.50000%	0.0756	0.015125
Variance						3.06%
Standard Deviation						17.50%
Probability	Stock D	Weighted Return	Expected Return	Deviation	SQd Dev.
0.3	25%	7.50%	12.50%	12.500%	0.0156	0.0046875
0.5	10%	5.00%	12.50%	-2.500%	0.0006	0.0003125
0.2	0%	0.00%	12.50%	-12.500%	0.0156	0.003125
Variance						0.813%
Standard Deviation						9.014%