Given the following information:

Expected return on Stock A .12 (12%)

Standard deviation of return .1

Expected return on Stock B .20 (20%)

Standard deviation of return .6

Correlation coefficient of the returns on Stock A and Stock B .2

a) What are the expected returns of 50 percent of funds invested in each stock?

b) If the correlation coefficient of the returns on Stock A and Stock B -.06 ,

what would be the portfolio's standard deviation with 50 percent of funds invested in each stock?