Compute the correlation coefficient between the returns of stock A and stock B. 2. Assume that you manage a risky portfolio (S) with an expected rate of return (E[r]) of 12% and a standard deviation (Os) of 20%. The T-bill rate (rf) is 2%. a. Your client chooses to invest 60% of a portfolio in your fund and 40% in a T-bill money market fund. What is the expected return and standard deviation of your client's portfolio? b. What is the Sharpe ratio of your risk portfolio and your client's overall portfolio? c. Draw the Capital Allocation Line (CAL) of your portfolio on an expected return/standard deviation diagram. What is the slope of the CAL? Show the position of your client on your fund's CAL