Given two stocks with E(r1) = 8%, E(r2) = 10%, 1 = 15%, 2 = 20%. Calculate the expected returns and standard deviations of a two-stock portfolio under each of the following conditions:

a) w1 = 0.70, w2 = 0.30, = 0.3

(b) w1 = 0.50, w2 = 0.50, = 0

(c) w1 = 0.30, w2 = 0.70, = 0.3

Here wi is the weight of stock i in the portfolio, is the correlation between the two stock

returns.