Question: Stock A's expected return and standard deviation are E[R_A] = mu_A = 6% and sigma_A = 12%, while stock B's expected return and standard deviation

Stock A's expected return and standard deviation are E[R_A] = mu_A = 6% and sigma_A = 12%, while stock B's expected return and standard deviation are E[R_B] = mu_b = 10% and sigma_B = 20%. How would you construct a portfolio with expected return of 8% using stock A and stock B? What is the standard deviation of the portfolio? (Assume rho_AB = 0.4) How would you construct a portfolio with standard deviation of 15% using stock A and stock B? What is the expected return of the portfolio? (Assume rho_AB = 0.4)

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