Please show formulas and the full work without the use of excel.

4. (24 points) You are forming a portfolio with two stocks. The first stock has an expected return of 15% and a standard deviation of 12%. The second stock has an expected return of 10% and a standard deviation of 8%. The two stocks have a correlation of 0.18. If you want to form the portfolio by investing $1500 in the first stock and $2500 in the second stock, what is the expected return and standard deviation of the portfolio? Lastly, use the information provided (and your calculations) to show that diversification works. 5. (13 points) Firm CWBY needs to raise $4.2 billion dollars of new equity to fund new investments. The current market price of CWBY's stock is $4.25 per share. There are currently 1 billion shares outstanding. The firm wants to conduct a 4 for 3 rights offer. The price per share in the offer will be $3.15 per new share. If we assume 100% subscription rate, what is the value of each right? What will be the impact on the market price of the stock