explain the calculation. thanks u

You construct a portfolio containing two stocks, X and Y. You invest 50% of your funds in Stock X and the remainder in Stock Y. Stock X has an expected return of 7.6% and has a standard deviation of 14%. Stock Y has an expected return of 14.6% and has a standard deviation of 19%. The correlation between the two stocks is 0.7. What is the expected return on the portfolio? a. 11.50% b. 10.50% c. 11.10% d. 10.90% The correct answer is: 11.10% You construct a portfolio containing two stocks, X and Y. You invest 30% of your fund in Stock X and the remainder in Stock Y. Stock X has an expected return of 9.8% and has a standard deviation of 15\%. Stock Y has an expected return of 120% and has a standard deviation of 21%. The correlation between the two stocks is 0.2. What is the covariance between the two stocks? a. 0.006300 b. 0.005741 c. 0.006435 d. 0.006602