Angela is given the following information about the returns on two stocks:

E(R1) = 0.10, E(R2) = 0.15, V(R1) = 0.0225, and V(R2) = 0.0441.

(a) If Angela is most interested in maximizing her returns, which stock should she choose?

(b) If Angela is most interested in minimizing her risk, which stock should she choose?

(c) Compute the expected value of the portfolio composed of 60% stock 1 and 40% stock 2.