L3.2 Exercises Exercise 3. Let (X, Y): s be the return rates (%) on two stocks A and B over the past 10 years. A few of the summary statistics are: sx=sd(x=)=3. v=meanw=9=a sy=sd(Y=2)=1- E = mean(X:) = 5, The return rate on a portfolio made up of a X 100% of stockA and (1 a) X 100% of stock B is R=aX+(1a)Y. a) Fora = 0.4 and r: b) Fora = 0.4- and r = c) Fora=0.4 and r = e) Fora=0.9 and r = ( ( ( (d) Fora = 0.9 and r = ( (f) Fora = 0.9 and r ( corr(X,Y:) = O, compute mean(R:) and \"volatility\" sd(R:). corr(X,Y:) = 0.8, corr(X,Y:) = +0.8, corr(X, Y: s) = 0, compute mean(R:) and \"volatility\" sd(R: compute mean(R:) and \"volatility\" sd(R: compute mean(R:) and l'volatility\" sd(R:). corr(X,Y:) = 0.8, corr(X,Y:) = +0.8, compute mean(R:) and \"volatility\" sd(R:). compute mean(R:) and \"volatility\" sd(R:). g) Which of these portfolio scenarios (a)(f), would you be most attracted to and why