Both parts must be done.

7. Portfolio Analysis Suppose there are two common stocks available for investment, stock A and stock B, with the following characteristics: Expected return: Standard deviation (a): .10 .30 Stock EB 40 20 Correlation coefficient (p) (a) Calculate the portfolio expected return and standard deviation of return for each of the following portfolios: Portfolio 2/3 1/3 0 1/3 2/3 (b) Sketch (this does not have to be a work of art, but try to be careful) the feasible set of all portfolios composed of A and B