Suppose Mosaic stock has an expected return of 15% and a volatility of 38%, and Molson-Coors Brewing has an expected return of 12% and a volatility of 28%. If the two stocks are uncorrelated:

Required:

i) What is the expected return and volatility of a portfolio consisting of 70% Mosaic stock and 30% of Molson-Coors Brewing stock?

ii) Given your answer to part (i), is investing all of your money in Molson-Coors stock an efficient portfolio of these two stocks?

iii) Is investing all of your money in Mosaic an efficient portfolio of these two stocks?