Consider two risky stocks X and Y. Stock Y has an expected return of 16% and a standard deviation of 13%. Stock X has an expected return of 20% and a standard deviation of 25%. The correlation between the returns of X and Y is +0.3.

What is the expected return and standard deviation of a portfolio with 40% in Y and 60% in X?

Is there any diversification benefit resulting from forming the portfolio? Please show calculations.