Consider the stocks below:

Stock	Expected Return	Standard Deviation	Cov with M
A	15%	15%	225
B	15%	15%	180
M	15%	15%	225

Compute the correlation between A and M and B and M

Which of the two stocks, A or B, should be mixed with M to achieve diversification? Explain

Find the expected return and standard deviation for a portfolio between your choice in #2 and M using weights of 0.3 and 0.7 respectively.

Find the minimum variance portfolio for combinations of these portfolios.