Question 3 (20 marks) Stocks X and Y have the following probability distributions of expected future returns: Probability 0.15 0.35 0.30 0.20 Stock X -5% 7% 15% 10% Stock Y -8% 10% 18% 25% Expected return Standard deviation Correlation between Stock X and Stock Y 6.42% 0.8996 i. Calculate the expected return for each stock. (5 marks) ii. Calculate the standard deviation of returns for Stock Y. (4 marks) iii. You have $2,000. You decide to put $500 of your money in Stock X and the rest in Stock Y. Calculate the expected return of your portfolio. (5 marks) - iv. Calculate the standard deviation of your portfolio based on the weight of Stocks X and Y stated in part (iii). (6 marks)