a)-You have 900 000TL to invest. You invest 600 000TL in stock A which has a standard deviation of %25 and expected return of 0,4. Stock B has a standard deviation of %40 and expected return 0,6. The correlation coefficient between these stocks is 0,45. Calculate the expected return and standard deviation of a portfolio that includes A and B stocks.

b)-Is there a way to reduce systematic risk of this portfolio? If, explain briefly.

c)- If you would have to choose one of the stocks above, which one would you choose to invest as a rational investor and why?

d)- How can you reduce the risk of a portfolio according to the portfolio theory? Explain briefly.