Suppose stock A has 0% average return, and 1.2% return standard deviation; stock B has 1% average return and 0.8% return standard deviation; and their coefficint of correlation is 0.7. Now you create a portfolio C by investing 60% in A and 40% in B.

R_A = 0%, Sigma_A = 1.2%; R_B = 1%, Sigma_B = 0.8%; rho_AB = 0.7, w_A = 60%, w_B = 40%

(1) What is Cs average return?

The answer is R_C = (%)

(2) What is portfolio Cs return standard deviation?

Your answer is Sigma_C = (%)