A portfolio is composed of two stocks, A and B. Stock A comprises 70% of the portfolio (wA = .7), while stock B comprises 30% of the portfolio (wB = .3). The correlation coefficient between the returns on the stock A and stock B (A,B) is .50. The following table presents the expected returns and the standard deviations of the two stocks.

	Expected Return (E(Ri))	Standard Deviation (i)
Stock A	12%	17%
Stock B	5%	14%

(1) What is the portfolio expected rate of return (E(Rp))?

(2) What is the covariance between the returns on the stock A and B?

(3) What is the variance of the return on the portfolio?

(4) What is the standard deviation of the return on the portfolio?