Stock A's expected return and standard deviation are E[RA] = A = 6% and A = 12%, while stock B's expected return and standard deviation are E[RB] = B = 10% and B = 20%. (a) How would you construct a portfolio with expected return of 8% using stock A and stock B? What is the standard deviation of the portfolio? (Assume AB = 0:4) (b) How would you construct a portfolio with standard deviation of 15% using stock A and stock B? What is the expected return of the portfolio? (Assume AB = 0:4)