explain Calculations please

Exercise 1 The following information about a two stock A and B. Stock B Portfolio Amount Expected Return Standard Deviation Correlation Stock A 20,000 12% 20% 30,000 20% 30% 0.25 1. Calculate the weight (W) for each stock. 2. What is the portfolio expected return? 3. Calculate the variance and standard deviation of the portfolio. Exercise 2 Consider an economy with only two assets. Details of these are given below. Assets X Number of shares 100 Price 1.5 Expected return 15 12 Standard deviation 15 9 Y 150 2 The correlation coefficient between the returns on the two assets is 1/3 and there is also a risk free asset. What is the expected rate of return on the market portfolio? Exercise 3 You have decided to invest your money in two shares C and D. You also know that the economy can go into either depression or growth. You think you are twice as likely to see economic growth, as you are to see economic depression. You also know the following about your two stocks: State of the Economy Growth Depression Probability 2 ? RA 10% RB -2% 40% 6% 1. Calculate the expected return for stocks C and D 2. Calculate the total risk (variance and standard deviation) for stock C and stock D