An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 4. The risk-free rate of return is 6% 1) Find the expected return on the optimal risky portfolio. (10 point) 2) Suppose the investor has $1 million to invest and wants to have an expected return of 14.8% for her complete portfolio. Find the dollar amonnt of her investment in the risk-free asset, stock A, and Stock B. (5 points) 3) Assume the returns follow a normal distribution, Calculate the probability that your portfolio value will be less than $800,000 in one year (5 points) An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 4. The risk-free rate of return is 6% 1) Find the expected return on the optimal risky portfolio. (10 point) 2) Suppose the investor has $1 million to invest and wants to have an expected return of 14.8% for her complete portfolio. Find the dollar amonnt of her investment in the risk-free asset, stock A, and Stock B. (5 points) 3) Assume the returns follow a normal distribution, Calculate the probability that your portfolio value will be less than $800,000 in one year (5 points)