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The past week's daily stock returns for Stock X: 1%, 1.5%, -0.7%, 3%, 2%; for Stock Y: 0.5%, -2.5%, 3%, 0.7%, -1%. Based on the

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The past week's daily stock returns for Stock X: 1%, 1.5%, -0.7%, 3%, 2%; for Stock Y: 0.5%, -2.5%, 3%, 0.7%, -1%. Based on the returns. (1) is there a diversification benefit if combining both stocks in a portfolio (answer Yes or No)?, and (2) if using X and Y to create a portfolio, what is the fraction of money that should be invested in X to reach the highest Sharpe ratio for the portfolio? Choose one of the following: A. 0%-30%, B. 30%-50%, C. 50%-80%, D.80%-100%

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