Question 2 8 pts Assume that all the stocks available to investors in a market offer the same expected return and risk E-15% and standard deviation = 45% annually). Additionally, consider that the stocks have a common correlation coefficient of 0.2. a a) What is the expected return of the optimal risky portfolio? [2 mark] b) What is the risk (standard deviations of a portfolio containing 10 stocks? [2 marks] c) How many stocks would you invest in if you want the risk of the portfolio to be 21%? (2 marks] During financial crises, securities presumably become more correlated with each other. In such a scenario what is the maximum theoretical risk of a portfolio containing 50 stocks? Explain. [2 marks) Edit View Insert Format Tools Table