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 marks]