Following is information for the required returns and standard deviations of returns for A, B, and C:

Stock	ri		i
A	7.0	%	31.62	%
B	11.0		49.43
C	20.0		89.00

The correlation coefficients for each pair are shown in the following matrix, with each cell in the matrix giving the correlation between the stock in that row and column. For example, _AB = 0.1566 is in the row for A and the column for B. Notice that the diagonal values are equal to 1 because a variable is always perfectly correlated with itself.

	A	B	C
A	1.0000	0.1566	0.1870
B	0.1566	1.0000	0.1658
C	0.1870	0.1658	1.0000

Do not round intermediate calculations. Round your answers to two decimal places.

1. Suppose a portfolio has 80% invested in A, 10% in B, and 10% in C. What are the expected return and standard deviation of the portfolio?

   Expected return:

   Standard deviation:

2. The partial model lists sixty six different combinations of portfolio weights (only six of them are shown below). For each combination of weights, find the required return and standard deviation.

3. If you seek a return of 12.9%, then what is the smallest standard deviation that you must accept?

b. The partial model lists sixty six different combinations of portfolio weights (only six of them are shown below). For each combination of weights, find the required return and standard deviation, WA op Tp % % % 0% 10% 30% 50% 60% 70% Wg 80% 70% 10% 20% 10% 20% Wc 20% 20% 60% 30% 30% 10% % % 9 % % %