Question 6 [15 points) George Costanza has invested 70% of his money in stock A and the 30% in stock B. He accesses their prospects as follows: Stock A Stock B Expected return 8% 12% Standard deviations 15% 17% 1.5 1.1 Beta Correlation between returns 0.25 a) What are the expected return of his portfolio? b) What is the standard deviation of his portfolio? c) Is Mr. Costanza better or worse off investing in the portfolio than investing entirely in stock A, or is it not possible to say? Explain your answer. d) What is Mr. Costanza's portfolio beta? e) Mr. Costanza's friend, Elaine, wants to invest in one stock and one stock only. Which stock represent a less risky investment for her, stock A or stock B, and why? 1) George's other friend, Jerry, wants to add one more stock to his portfolio of 50 stocks. Between stock A and B, which one represents a less risky addition for Jerry and why