The following information is relevant for Questions 7-10:

	Stock A	Stock B
Investment	$3,000	$7,000
Expected return	16%	9%
Standard deviation	50%	40%
Correlation between A and B	0.30

The expected return and standard deviation of a portfolio of Stock A and Stock B are:

		A)expected return = 13.9%; standard deviation = 40.3%
		B)expected return = 11.1%; standard deviation = 35.5%
		C)expected return = 11.1%; standard deviation = 33.7%
		D)expected return = 13.9%; standard deviation = 35.5%