QUESTION 1 The following information is provided about two securities (A and B) you want to invest in. Required: a) (i) Calculate the expected return and standard deviation for securities A and B respectively. (6 marks) (ii) If the correlation between the two stocks is 0.31, calculate the expected return and standard deviation of a portfolio that consists of 40% invested in A and 60% invested in B ( 2 marks) (iii) Without calculation, explain the impact a perfect negative correlation between securities A and B would have on the risk of this portfolio? (2 marks) [Total 10 marks]