percent return for an investment in stock 1, and y = percent return for an investment in stock 2. The expected return and variance for stock 1 are E(x) = 8.36% and Var(x) = 25. The expected return and variance for stock 2 are E(y) = 4.23% and Var(y) = 4. The covariance between the returns is xy = -3. A person is interested in constructing a portfolio. Two stocks are being considered. Let x = a. What is the standard deviation for an investment in stock 1 and for an investment in stock 2? Stock 1 Stock 2 % % Using the standard deviation as a measure of risk, which of these stocks is the riskier investment? would be considered riskier than investments in - Select your answer Investments in Select your answer - v Select your answer because the standard deviation is b. What is the expected return and standard deviation, in dollars, for a person who invests $500 in stock 1 (to 2 decimals)? Expected Return Standard Deviation $ c. What is the expected percent return and standard deviation for a person who constructs a portfolio by investing 50% in each stock (to 3 decimals)? Expected Return Standard Deviation % % 29 29 d. What is the expected percent return and standard deviation for a person who constructs a portfolio by investing 70% in stock 1 and 30% in stock 2 (to 3 decimals)? Expected Return Standard Deviation % % e. Compute the correlation coefficient for x and y and comment on the relationship between the returns for the two stocks. Enter negative value as negative number. The correlation coefficient is (to 2 decimals).