You are given the following information:

a) What are the expected returns and standard deviations of a portfolio consisting of:

1. 100 percent in stock A?

2. 100 percent in stock B?

3. 50 percent in each stock?

4. 25 percent in stock A and 75 percent in stock B?

5. 75 percent in stock A and 25 percent in stock B?

Expected return on stock A 12% Expected return on stock B 20% Standard deviation of returns: stock A 1.0 stock B 6.0 Correlation coefficient of the returns on stocks A and B +.2