Assume analysts provide the following types of information. Assume short sales are allowed. The pairwise coefficient of correlation between all three stocks is 0.5 , i.e. AB=AC=BC=0.5. a) What the rate of return and the standard deviation of an equal weighted portfolio consist of all three stocks? b) What is the minimum variance portfolio of A and B ? What is the standard deviation of this portfolio? Explain briefly why the standard deviation of the portfolio is lower than that of A and B. c) Find the weights of stock A,B and C in the efficient portfolio. Assume analysts provide the following types of information. Assume short sales are allowed. The pairwise coefficient of correlation between all three stocks is 0.5 , i.e. AB=AC=BC=0.5. a) What the rate of return and the standard deviation of an equal weighted portfolio consist of all three stocks? b) What is the minimum variance portfolio of A and B ? What is the standard deviation of this portfolio? Explain briefly why the standard deviation of the portfolio is lower than that of A and B. c) Find the weights of stock A,B and C in the efficient portfolio