Suppose that the risk-free interest rate is 0.02, the expected return on the market portfolio is M = 0.08, and the volatility of the market portfolio is M = 0.10. Stock A has A = 1.2 and A = 0.20, while stock B has B = 1.6 and B = 0.25. Assume that the correlation between A and B is 0.20. 

(a) For a portfolio that splits evenly among A and B, find its expected return and volatility. 

(b) For a portfolio that splits evenly among A, B and the risk-free investment, find its expected return and volatility.