a. Use the information in the table below to calculate the following items: Probability Stock Return Bond Return 10% -56% -10% 15% -11% 6% 20% 11% 12% 25% 14% 10% 30% 35% -1% Stock - Expected Return Stock - Standard Deviation Bond - Expected Return Bond - Standard Deviation Covariance Correlation Which asset is a better investment? (Stock, Bond, or Hard to say) b. Suppose E(rs) = 5%; Op = 10%; E(rs) = 12%; os = 22%; Pes = -0.2. The risk free rate is 2%. i. Among the following 11 combinations, which one is the optimal portfolio? Stock weighting Bond weighting 0% 100% 10% 90% 20% 80% 30% 70% 40% 60% 50% 50% 60% 40% 70% 30% 80% 20% 90% 10% 100% 0% ii. What is the expected return, standard deviation, and the Sharpe ratio of the optimal portfolio