3. Suppose that there are two risky assets A and B. Suppose that rA = 0.1, rB = 0.1, A = 0.4, B = 0.4, and AB = 0.25. a. If an investor places all of her investable wealth in only one of these stocks, calculate the expected rate of return and risk of her portfolio. b. If she divided her money equally between the two stocks, calculate the expected rate of return and risk of her portfolio. c. Using the above results to explain the benefit of diversification.