You are considering investing in two securities, X and Y. The following data are available for the two securities: Security X Security Y Expected return 0.15 0.09 Standard deviation of returns 0.08 0.07 Beta 1.40 0.55 % % Round your answers to two decimal places. a. If you invest 40 percent of your funds in Security X and 60 percent in Security Y and if the correlation of returns between X and Yis +0.5, compute the following: 1. The expected return from the portfolio: ll. The standard deviation of returns from the portfolio: b. What happens to the expected return and standard deviation of returns of the portfolio in Part a if 70 percent of your funds are invested in Security X and 30 percent of your funds are invested in Security Y? 1. The expected return from the portfolio: il. The standard deviation of returns from the portfolio: c. What happens to the expected return and standard deviation of returns of the portfolio in Part a if the following conditions exist? 1. The correlation of returns between Securities X and Y is +0.8. The expected return from the portfolio: The standard deviation of returns from the portfolio 1. The correlation of returns between Securities X and Y is o. The expected return from the portfolio: The standard deviation of returns from the portfolio: l. The correlation of returns between Securities X and Y is -0.9. The expected return from the portfolio: The standard deviation of returns from the portfolio: % % % % %