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) Which stock has a higher risk? Explain your answer.

(b) Suppose your portfolio has 50 shares of stock A and 60 shares of stock B. What is your expected return in the portfolio?

(c) 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?