You know the following information about the possible returns offered by the two stocks, Stock X and Stock Y next year. Scenario Probability Return from X Return from Y Recession 40% -5% -6% Normal 60% 10% 14% a. Calculate the expected returns and variances for Stock X, Stock Y. b. From risk-return point of view, which stock, X or Y is a better investment? Why? c. What is the correlation coefficient between returns on stock X and stock Y? d. Calculate the expected returns and standard deviations for a "portfolio" consisting of 40% of stock X and 60% of stock Y. e. If I invest 80% of my money in this portfolio (40% in stock X and 60% in stock Y) and 20% of my money in T-bills which offers a rate of return of 2%. What is the expected return and standard deviation of my investment portfolio?