Please solve for Questions A- E.

(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Vichols State University and is anxious to begin investing her meager savings as a way of applying what she has earned in business school. Specifically, she is evaluating an investment in a portfolio comprised of two firms' common stock. She has collected the following information about the common stock of Firm A and Firm B: a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to +1 . d. Answer part a where the correlation between the two common stock investments is equal to -1 . e. Using your responses to questions ad, describe the relationship between the correlation and the risk and return c he portfolio. . If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.70 , then the expected rate of return in the portfolio is \%. (Round to two decimal places.) \begin{tabular}{lcc} Firm A's common stock & \begin{tabular}{c} Expected \\ Return \end{tabular} & \begin{tabular}{c} Standard \\ Deviation \end{tabular} \\ Firm B's common stock & 0.17 & 0.15 \\ Correlation coefficient & 0.19 & 0.25 \\ \hline \end{tabular}