An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 15% and a standard deviation of return of 25%. Stock B has an expected return of 12% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.2. The risk-free rate of return is 1.5%.

1) Approximately what is the proportion of the optimal risky portfolio that should be invested in Stock B?

2) What is the Expected Return on the Optimal Portfolio?

3) What is the REWARD to VARIABILITY Ratio of the Optimal Portfolio?