Consider two stocks and their financial statistical properties: a) What is meant by Expected Return? How can this be obtained? b) The two stocks have the same expected return and standard deviation of returns, does it mean holding any of the two stocks is just as good as a portfolio of a mix of two stocks? Now consider a portfolio: 60% stock A and 40% Stock B c) What is the expected return of the portfolio? d) What is the variance and standard deviation of this portfolio's return if: i) correlation of returns on Stock A and B is 1 , ii) correlation of returns on Stock A and B is 0 e) Comment on the limitation of using the Markowitz portfolio theory as a way of investment decisions