E(RA)=.13E(RB)=.11StandardDeviation(RA)=.09StandardDeviation(RB)=.02Weight(A)=30%Weight(B)=70% Directions: Compute the mean and standard deviation of two portfolios if the covariance is 0.40 and 0.35 between Stock A and Stock B, respectively. Problem \#2 (8 Points) YYY Co.'s most recent free cash flow was $2,650,000. The firm is expected to grow free cash flow at a constant rate of 9% per year forever. YYY Co. has $1,900,000 of debt, $500,000 of Preferred Stock, and 1,650,000 shares outstanding. The Weighted Average Cost of Capital is 12%. Directions: Compute the stock price under the Free Cash Flow constant growth model