A Question 8: (6 points) An investor has a portfolio with three stocks, A, B, and C, each with $1000 investment. The net return for each dollar invested is a random variable with mean and standard deviation given below Stock Mean Standard Deviation 10.1 0.05 B 0.15 0.07 0.2 0.09 (For example, the net return for stock B being 0.15 means every $1 invested in stock B will yield $0.15 in net return.) Define the net return of the entire portfolio as X. For questions (A) and (B), assume stock returns are independent. (A) Find the mean of X, E(X). (2 points). (B) Find the variance of X, var(X). (2 points). (C) Now assume stock returns are correlated. The correlation coefficients are given below. Correlation A 1.00 0.30 -0.15 0.30 1.00 -0.60 -0.15 -0.60 1.00 Find the variance of X, var(X). (2 points). B