Expected Return	Standard Deviation
Stock A	10%	13.50%
Stock B	4%	9%
Stock C	21%	29%
Risk Free	3%

The correlation between Stock A and Stock B is 0.33. The correlation between stock B and stock C is -0.87, and the correlation between Stock A and Stock C is 0.75.

(1) What is the expected return and risk of a risky portfolio invested 40% in Stock A and 60% in Stock B?

(2) What is the expected return and risk of a risky portfolio invested 30% in Stock B and 70% in Stock C?

(3) For an Investor with a risk Aversion score of 6, which risky portfolio option (1) or (2) above, would they prefer? (Hint: you must first solve for optimal y for each portfolio option and use the complete portfolio formulas).

(4) What is the expected return and standard deviation for a risky portfolio invested 18% in stock A, 32% in stock B, and 50% in stock C?