Data table Expected Return Firm A's common stock 0.15 Firm B's common stock 0.18 Correlation coefficient 0.60 (Click on the icon in order to copy its contents into a spreadsheet.) Standard Deviation 0.20 0.24 Print Done (Computing the standard deviation for a portfolio of two risky Investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has leared in business school. Specifically, she is evaluating investment in a portfolio comprised of two firms' common stock. She has collected the following information about the common stock of Firm A and Firm B: a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to +1. d. Answer part a where the correlation between the two common stock investments is equal to - 1 e. Using your responses to questions ad, describe the relationship between the correlation and the risk and return of the portfolio. a. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.60, then the expected rate of retum in the portfolio is %. (Round to two decimal places.) The standard deviation in the portfolio is%. (Round to two decimal places.) b. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is zero, then the expected rate of return in the portfolio is%. (Round to two decimal places.) The standard deviation in the portfolio is %. (Round to two decimal places.) c. If Mary decides to invest 50% of her money in Fim A's common stock and 50% in Firm B's common stock and the correlation coefficient between the two stocks is +1, then the expected rate of retum in the portfolio is %. (Round to two decimal places.) The standard deviation in the portfolio is % (Round to two decimal places.) d. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Fim B's common stock and the correlation coefficient between the two stocks is - 1, then the expected rate of return in the portfolio is % (Round to two decimal places.) The standard deviation in the portfolio is % (Round to two decimal places.) e. Using your responses to questions &d, which of the following statements best describes the relationship between the correlation and the risk and return of the portfolio? (Select the best choice below.) OA. The correlation coefficient has a negative effect on the expected return of a portfolio, and the closer the correlation coefficient is to negative one. - 1, the lower the risk. B The correlation coefficient has no effect on the expected retum of a portfolio, but the closer the correlation coefficient is to negative one. - 1. the higher the risk