Question 1 (5 points): Calculate the five-year holding period return for NRG and the same holding period return for XOM Question 2 (2 parts, 5 points total): Part A (2 points): Without calculating the portfolio variance explicitly, will the diversification effect hold for a portfolio that consists of 30% NRG and 70% XOM? Defend your answer numerically. You do not need to quantify the diversification effect in this question, just determine whether there will be a diversification effect. Please note that you should not calculate the portfolio variance for this part. You have to calculate something- part of the problem is to figure out what! Part B (3 points): Calculate the expected portfolio value and the portfolio variance for a portfolio that consists of 30% NRG and 70% XOM