The first table shows expected returns and standard deviations for monthly percent changes of Kroger, Cavalo, and Smucker's stocks over the last 5 years. Table 2 shows the correlation coefficients for each combination of these three stocks. Use this information to answer the questions that follow.

KROGER	CAVALO	SMUCKER'S
Expected Return	0.31%	0.72%	0.47%
St. Deviation	8.27%	9.43%	5.56%

able 2. Correlation Coefficients

	KROGER	CAVALO	SMUCKER'S
KROGER	1
CAVALO	0.17	1
SMUCKER'S	0.29	0.32	1

a. What would be the expected return of a portfolio in which 70% is invested in Kroger and 30% is invested in Cavalo?b.What would be the standard deviation of the portfolio described in the previous question? (70% Kroger, 30% Cavalo)

c. Would you expect the portfolio described in above to be the 2-asset portfolio with the lowest possible standard deviation, or do you think there is another way to construct the portfolio that would result in a lower standard deviation? Explain your answer.