The investor is presented with the two following stocks and she chooses to invest 40% of her portfolio in stock A. Stock A Stock B Expected Return 15% 20% Standard Deviation 30% 40% Which of the following statements is correct if the correlation between the stocks is 1? A. The expected return of the portfolio is 18% B. The standard deviation of the portfolio is 35% C. The standard deviation of the portfolio is 27% D. Both A and B are correct QUESTION 16 The stock ABC has a beta of 1.8 and its standard deviation is 50%. Its correlation coefficient with the market return is 0.9. What is the standard deviation of the market return? A. 25% B. 36% C. 18% D. 15%