Using the data in the following table, answer questions.

Year	Stock X	Stock Y
2012	-11%	-5%
2013	15%	25%
2014	10%	15%
2015	-5%	-15%
2016	5%	-5%
2017	8%	-2%
2018	7%	10%
2019	5%	15%
Average return
Standard deviation
Correlation between Stock X and Stock Y	0.7567

1.Calculate the standard deviation of returns for Stocks X and Y.

2.For a portfolio that is 75% weighted in Stock X, and 25% weighted in Stock Y, calculate the expected return of the portfolio.

3.Calculate the standard deviation of your portfolio based on the weights of Stocks X and Y stated in part (2).

4.Suppose the correlation between Stocks X and Y has reduced to 0.35, does it increase or reduce the standard deviation of your portfolio based on the weights of Stocks X and Y stated in part (2). Explain your answer.