A 1. You are given the following information: Stock Expected return (in %) o (in %) 10 10 B The covariance between these returns is 16%. The risk-free rate is 6%. (a) Find the expected return and standard deviation of the following portfolios: i. 50% in A, 50% in B ii. 50% in A, 50% in the risk-free asset iii. 150% in A, financed by borrowing at the risk-free rate iv. -100% in A, rest invested at the risk-free rate v. 20% in A, 20% in B, rest invested at the risk-free rate (Hint: you can use what you calculated in part (a)). (b) Which portfolio of A and Rf has: i. An expected return of 10% ii. An expected return of 7.5% iii. A standard deviation of 7.5% (c) Which portfolio of A and B has: i. An expected return of 10% ii. An expected return of 7.5% iii. A standard deviation of 7.5% (Don't be too rigorous, just try to find one portfolio with this SD. You might need Excel for this one)