A portfolio consists of 2 stocks:

Stock	Expected Return	Standard Deviation	Weight
Stock 1	10%	15%	0.30
Stock 2	13%	20%	???

The correlation between the two stocks return is 0.50

(a) Calculate the expected return and standard deviation OF THE PORTFOLIO.

(b)(i) Briefly explain, in general, when there would be benefits of diversification (for any portfolio of 2 securities)

(ii) Describe whether the above portfolio would exhibit benefits of diversification (and why). [No calculations are required.]

(c) Show your calculations re: whether the above portfolio exhibits benefits of diversification and indicate whether it does/doesnt and why.