A portfolio consists of Stock Aand Stock B. Data for the 2 stocks is shown below.

Stock A: expected return		9%
Stock A: standard deviation		25%
Stock B: expected return		12%
Stock B: standard deviation		35%
Correlation between A and B		0.30
Stock A beta		75%
Stock B beta		1.00
		1.25
% portfolio in A		50%
% portfolio in B a. Calculate the expected return of the portfolio. Portfolio: expected return.		50% b. Calculate the standard deviation of the portfolio. Portfolio: standard deviation c. Calculate the beta of the portfolio d. Is your portfolio less risky or more risky than the market? Explain. e. Will your portfolio likely outperform or underperform the market in a period when stocks are rapidly falling in value? Why?