The investor is presented with the two following stocks and she chooses to invest 30% of her portfolio in stock A.

	Stock A	Stock B
Expected Return	10%	15%
Standard Deviation	20%	30%

Which of the following statements is correct if the correlation between the stocks is -1?

1. The expected return of the portfolio is 12%.
2. The standard deviation of the portfolio is 15%.
3. The standard deviation of the portfolio is 27%.
4. None of the answers is correct.