Your broker calls to tell you about three stocks he feels you should consider purchasing He provides you with the following report Beta Expected Retum 20% Slock AA Stock BB Slock CC Std Dev of Returns 12 7 NO 1295 1.5 1.0 0.9 The correlation coefficients are as follows: Stock AnStock BB 0.6 Stock AAStock CC: 0.35 Stock BB/Stock CC. 0.85 After reviewing this data you decide that you only want to invest in two of the three stocks. Moreover, you will consder only three combinations of the three stocks Portfolio (1) Portfolio (2) Portfolio (3) 45% in Stock AA 5595 in Stock BB 50% each in Stock AA and 50% in Stock 00 25% in Stock BB, 75% in Stock CO Required: 3) Calcuate the expected returns and standard deviation of the three podchosWhen portio is best using these criteria? the risk free rate is 7%, and the expected retum on the market is 1595, would you purchase any of these stocks Why or why not