Question: PLEASE SOLVE IT STEP BY STEP AND NOT EXCEL SINCE I MUST UNDERSTAND THE PROCESS, THANK YOU! Walter invests 60% of his funds in Tuco's

PLEASE SOLVE IT STEP BY STEP AND NOT EXCEL SINCE I MUST UNDERSTAND THE PROCESS, THANK YOU!

Walter invests 60% of his funds in Tuco's stock and 40% in Pinkman's stock. The standard deviation of returns on Tuco's stock is 10%, and on Pinkman's stock, it is 20%.

Calculate the variance and standard deviation of portfolio returns, assuming:

a. The correlation between the returns is 1.0.

b. The correlation is 0.5.

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