Swift Manufacturing is considering building a portfolio containing two assets, stocks and bonds Stocka will represent $40\%$ of the dollar value of the portfolio, and bonds will scount for the other $60\%.$ The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point

Stocks

Rate of return

$-10\%$

$10\%$

$20\%$

$30\%$

Probability of stock

$0\mathrm{.}10$

$020$

$0\mathrm{.}40$

$0\mathrm{.}30$

Bonds

Probability

$0\mathrm{.}20$

$0\mathrm{.}40$

$0\mathrm{.}15$

Rate of Return of bonds

$10\%$

$15\%$

$20\%$

$25\%$

Calculate the expected return of each asset.

Calculate the expected value of portfolio return.

Calculate the standard deviation of each asset.

Calculate the standard deviation of partfolio

e$.$ How would you characterize the correlation of returns of the two ansets?

f$.$ Discuss any benefits of diversification achieved through creation of the portfolio.