Given two stocks with E(r1) = 10%, E(r2) = 12%, 1 = 18%, 2 = 22%. (E(ri) = expected return) ( = standard deviation) Calculate the expected returns and standard deviations of a two-stock portfolio under each of the following conditions:

(a) w1 = 0.80, w2 = 0.20, = 0.6;

(b) w1 = 0.60, w2 = 0.40, = 0;

(c) w1 = 0.20, w2 = 0.80, = 0.6.

Where wi is the weight of stock i in the portfolio, is the correlation between the two stock returns.