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)?,

(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%.