A person is interested in constructing a portfolio. Two stocks are being considered. Let x = percent return for an investment in stock 1, and y = percent return for an investment in stock 2. The expected return and variance for stock 1 are E(x): = 8.35% and Var(x) = 25. The expected return and variance for stock 2 are E(y) = 3.40% and Var(y) = 1. The covariance between the returns is (a) What is the standard deviation (as a percent) for an investment in stock 1? % What is the standard deviation (as a percent) for an investment in stock 2? % Using the standard deviation as a measure of risk, which of these stocks is the riskier investment? An investment in stock 1 ---Select--- be risky compared with an investment in stock 2. (b) What is the expected return and standard deviation, in dollars, for a person who invests $600 in stock 1? (c) expected return standard deviation =-3. xy What is the expected percent return and standard deviation, in dollars, for a person who constructs a portfolio by investing $300 in each stock? (Round your answer for standard deviation to two decimal places.) expected return standard deviation $ $ (d) What is the expected percent return and standard deviation for a person who constructs a portfolio by investing $420 in stock 1 and $180 in stock 2? (Round your answer for standard deviation to two decimal places.) expected return standard deviation (e) Compute the correlation coefficient for x and y. Comment on the relationship between the returns for the two stocks. There is ---Select--- --Select-- a strong positive a strong negative relationship between the variables. not a Submit Apewor