QUESTION 3 [30 MARKS] As a portfolio manager you are provided with the below information relating to the risk and return of 2 stocks namely Stock X and Y: The expected returns of X and Y are E[RX] = 10% and E[RY] = 15%. The volatilities of the returns are X = 18% and Y = 20%. The correlation coefficient of the returns for these two stocks is 0.25. . The expected return for a portfolio, consisting of stocks X and Y, is 12%. (a) You are required to calculate the volatility of the portfolio return.( of portfolio) [15 ma No one likes a surprise. This is especially true when it comes to your income or investments. Knowing what your dividend paying stocks, mutual funds and Exchange Traded Fund are paying now and in the future is of utmost importance. (b) Critically analyse the factors affecting company's dividend policy. [15 m