Take intermediate calculations to four decimal places and show your final answer to two decimal places. 1. A portfolio consists of two stocks: (6 marks) The correlation between the two stocks' return is 0.50 (a) Calculate the expected return and standard deviation of the portfolio. (b) (i) Briefly explain, in general, when there would be "benefits of diversification" (for any portfolio of two securities). (ii) Describe whether the above portfolio would exhibit "benefits of diversification" (and why). [No calculations are required.] 1 (c) Show your calculations re: whether the above portfolio exhibits "benefits of diversification" and indicate whether it does/doesn't and why