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Suppose you wish to look into the investments on Stocks A and B. For each share of the stock, the return is given below: Return

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Suppose you wish to look into the investments on Stocks A and B. For each share of the stock, the return is given below: Return ($) Per Share Average Standard Deviation Stock A 5 1.0 Stock B 7 1.2 The correlation between returns of Stocks A and B is 0.2. (a) (3 points) Which stock has a higher risk? Explain your answer. (b) (2 points) Suppose your portfolio has 50 shares of stock A and 60 shares of stock B. What is your expected return in the portfolio? (c) (5 points) Suppose your portfolio has 50 shares of stock A and 60 shares of stock B. What is the standard deviation on the return in the portfolio

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