The following information pertains to Question 6 to Question 8 A fund manager has created a 2-stock portfolio. They shorted \$7 million worth of Stock A and has purchased \$17 million of Stock B. The correlation between Stock A's and Stock B's returns is 0.45 The expected returns and standard deviations of the two stocks are: Stock A StockAStockBER=10%ER=14.5%SD=40%SD=45% What is the standard deviation for this portfolio? 68.6% 43.0% 38.6% 34.5% Question 8 1 pts The following information pertains to Question 6 to Question 8 A fund manager has created a 2-stock portfolio. They shorted \$7 million worth of Stock A and has purchased \$17 million of Stock B. The correlation between Stock A's and Stock B's returns is 0.45 The expected returns and standard deviations of the two stocks are: Stock A StockAStockBER=10%ER=14.5%SD=40%SD=45% Suppose the correlation between Stock A and Stock B increases, but nothing else changes. Which statement will be true? Volatility of the portfolio will decrease, and return will stay the same Volatility of the portfolio will increase, and the return will stay the same Volatility of the por decrease, and return will change Volatility of the portfolio will increase, and the return will change