The table below presents the retums on stocks ABC and XYZ for a five-year period. Their covariance is 0.15776. Year 1 2 3 4 5 ABC 0.16 0.42 -0.02 -0.26 0.48 XYZ 0.12 0.62 -0.23 -0.62 0.52 a. (2 points) Use these five-year records, what are the expected annual returns of these two stocks? b. (3 points) If you want to use these two stocks to form a portfolio with the expected annual return of 20%, what proportion of your assets would you invest in each? c. (2 points) What are the standard deviations of each stock's annual return? Note that use sample variance and standard deviation, e.g.. Var(r) =*E( - )? d. (2 points) What is the correlation of the two stocks' annual returns? c. (3 points) What is standard deviation of the portfolio constructed in (b)? f. (3 points) Suppose the risk-free rate is 6%. Compute the intercept and the slope of the capital allocation lines for ABC and XYZ. Which of these two stocks yields a higher reward-to-risk ratio