Assume you have been given a dataset of daily returns for two stocks, ABC and XYZ, and you want to construct an optimal portfolio that includes both of these stocks. The expected returns and standard deviations for the two stocks are as follows:

ABC: Expected Return = 0.07, Standard Deviation = 0.2
XYZ: Expected Return = 0.12, Standard Deviation = 0.3
Furthermore, assume that the correlation between the two stocks is 0.5. The risk-free rate is 0.03.

a) Calculate the expected return and standard deviation of a portfolio that invests 40% in ABC and 60% in XYZ.

b) Calculate the correlation between the returns of the two stocks.

c) Calculate the expected excess return and expected Sharpe ratio for XYZ.

d) Calculate the weights, expected return, and standard deviation of the minimum variance portfolio.

e) Based on your calculations, what would you recommend to an investor who wants to invest in a portfolio that includes both ABC and XYZ?