StockA's expected return and standard deviationa reE[rA]=6% and A=12%,while stockB's expected return and standard deviation are E[rB] = 10% and B= 20%.

(a)Using Excel to compute the expected return and standard deviation of the return on a portfolio with

1. weights wA=0, 0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, 0.9, and 1, for the following alternative values of correlation between A and B: AB=0.6 and AB= -0.4. Under the two different correlations, plot the expected returnstandard deviation pairs on a graph (with the standard deviations on the horizontal axis, and the expected returns on the vertical axis).
2. (b)How would you construct a portfolio p with expected return of 8% using Stock A and Stock B? What is the standard deviation of the portfolio? (Assume AB = 0.4)
3. (c)How would you construct a portfolio q with standard deviation of 15% using Stock A and Stock B? What is the expected return of the portfolio? (Assume AB = 0.4)