Suppose General Motors stock has an expected return of 19% and a volatility of 41%, andMolson-Coors Brewing has an expected return of 14% and a volatility of 30%. If the two stocks areuncorrelated,

a. What is the expected return and volatility of a portfolio consisting of 70% General Motors stock and 30% ofMolson-Coors Brewingstock?

b. Given your answer to (a), is investing all of your money inMolson-Coors stock an efficient portfolio of these twostocks?

c. Is investing all of your money in General Motors an efficient portfolio of these twostocks?