please solve a, b, and c

Portfolio returns. Firm A. is currently trading at $55 per share, plans to pay a dividend of $0.37 next year, and then continue to grow dividends at a rate of 8.00% indefinitely. Firm B is currently trading at $142 per share, plans to pay a dividend of $6.5 next year, and then continue to grow dividends at a rate of 7.5% indefinitely. Using historical data, you estimate the standard deviation of Firm A to be 20%, the standard deviation of Firm B to be 25%, and the correlation between the two stocks to be 0.73. (a). (5pts) Assume each stock's expected return is equal to its required rate of return. What is the expected return for Firm A ? What is the expected return for Firm B ? (b). (2+2+3+3 pts) Suppose you bought 2000 shares of Firm A, and short-sold 400 shares of Firm B. You also have $50,000 invested in the risk-free asset. What is the weight of each asset in your portfolio? What is the expected return of your portfolio? What is the variance of your portfolios? (c). (5 pts) Assume you hold the same portfolio with weights as in part (b). Suppose over the next three years, Firm A earns annual returns of 5%,10%, and 3%, and Firm B earns annual returns of 10%,15%, and 8%. What is the three-year holding period return return of your portfolio? Portfolio returns. Firm A. is currently trading at $55 per share, plans to pay a dividend of $0.37 next year, and then continue to grow dividends at a rate of 8.00% indefinitely. Firm B is currently trading at $142 per share, plans to pay a dividend of $6.5 next year, and then continue to grow dividends at a rate of 7.5% indefinitely. Using historical data, you estimate the standard deviation of Firm A to be 20%, the standard deviation of Firm B to be 25%, and the correlation between the two stocks to be 0.73. (a). (5pts) Assume each stock's expected return is equal to its required rate of return. What is the expected return for Firm A ? What is the expected return for Firm B ? (b). (2+2+3+3 pts) Suppose you bought 2000 shares of Firm A, and short-sold 400 shares of Firm B. You also have $50,000 invested in the risk-free asset. What is the weight of each asset in your portfolio? What is the expected return of your portfolio? What is the variance of your portfolios? (c). (5 pts) Assume you hold the same portfolio with weights as in part (b). Suppose over the next three years, Firm A earns annual returns of 5%,10%, and 3%, and Firm B earns annual returns of 10%,15%, and 8%. What is the three-year holding period return return of your portfolio