Two stock: Stock 1 and Stock 2 Correlation=12=0.5W1=40%,W2=60% The covariance of stock 1 and stock 2 is 1: 1. 0.04 2. 0.1 3. 0.2 4. 0 5. -0.01 The expected return of the portfolio consisting of stock 1 and 2 is 1: 1. 16% 2. 12% 3. 14% 4. 20% 5. 15% The standard deviation of the portfolio consisting of stock 1 and stock 2 1: 1. 10% 2. 7% 3. 9% 4. 8% 5. 20%