Problem 2.1 (15 pts) You are given the following information for two stocks: Stock Expected return Volatility A 0.15 0.21 B 0.18 0.28 A portfolio is 30% invested in stock A and 70% invested in stock B. The correlation be- tween the returns on the stocks is 0.4. The annual effective risk-free rate is 0.03. Stock C has volatility 0.3. Its correlation with stock A and B are 0.15 and 0.25, respectively. Find the required return on stock C. Problem 2.1 (15 pts) You are given the following information for two stocks: Stock Expected return Volatility A 0.15 0.21 B 0.18 0.28 A portfolio is 30% invested in stock A and 70% invested in stock B. The correlation be- tween the returns on the stocks is 0.4. The annual effective risk-free rate is 0.03. Stock C has volatility 0.3. Its correlation with stock A and B are 0.15 and 0.25, respectively. Find the required return on stock C