Jonathan has been perusing the internet and has decided to invest in one of the two following funds. He can also invest in a money market mutual fund that returns 1%. Fund Ticker Expected Return (%) Standard Deviation (%) Castle Byers CB 19 32 MKUltra MKU 25 40

Jonathans brother, Will, is hanging around listening to The Clash and observing Jonathans analysis. Will suggests that since funds CB and MKU have different investment strategies, their returns probably dont tend to move around together so that Jonathan might be better off investing in a combination of both funds and the money market mutual fund. Will estimates that the correlation is about 0.2 for returns on CB and MKU. What are the expected return and standard deviation of a portfolio that invests 50% in CB and 50% in MKU?