Please answer the b c d questions. Thank you!

3.80 Problem 1: Portfolio Return Properties (6 points) fou are an investor who likes expected return and dislikes variance. There are 2 stocks available to you: Expected retum Standard deviation Stock A 5% 7% Stock B 10% 12% a) (1 point) You want to construct a portfolio with expected return of 8%. What are your portfolio allocations (percentages) to stock A and stock B? B 544 if a mld meight of stuk A a(1-) wigs f S 3. = 5 + 1-) 87. = -ta + 62. ure A: = 4. = (0%. 3. kdy strik A, 60- cut b . b) (2 points) You decide to construct the portfolio from part a). However, you are not sure about the correlation between returns on stocks A and B. If you, as an investor, could choose any correlation value, which one would you choose and why? C) (3 points) You are still not sure what is the correlation between returns on stocks A and B