Diversification Effects. The securities of firms A and B have the expected return and standard deviations given below; the expected correlation between the two stocks (PAB) is 0.1.

r s

A 14% 20%

B 9% 30%

Compute the return and risk for each of the following portfolios:

(a) 100 percent A

(b) 100 percent B

(c) 60 percent A 40 percent B

(d ) 50 percent A50 percent B

Please explain and do not copy from Chegg. Otherwise i have to report the answer.