QUESTION 6 James owns a portfolio of two stocks with the following expected returns, standard deviations, and weights: Stocks Weight Expected Return 10% 15% Standard Deviation 20% 25% A B 0.35 0.65 The maximum portfolio standard deviation is produced when the correlation between the two stocks is a. 23.25%, +1. b. 32.3596, +1. C. 23.30%, -1. d. 32.206,-1. e. None of the above. QUESTION 7 It is possible to form a two-stock portfolio that is risk free if the correlation coefficient of the returns of the two stocks is a. positive. b. negative. C. equal to -1. d. equal to 0. e. equal to 1