Question: There are 2 questions 1 and 2. Take intermediate calculations to four decimal places and show your final answer to two decimal places. 1. A

There are 2 questions 1 and 2. Take intermediate calculations to

four decimal places and show your final answer to two decimal places. There are 2 questions 1 and 2.

Take intermediate calculations to four decimal places and show your final answer to two decimal places. 1. A portfolio consists of two stocks: (6 marks) Stock Expected Return Standard Deviation Weight Stock 1 10% 15% 0.30 Stock 2 13% 20% ??? The correlation between the two stocks' return is 0.50 (a) Calculate the expected return and standard deviation of the portfolio. EXPECTED RETURN STANDARD DEVIATION (b) (i) Briefly explain, in general, when there would be "benefits of diversification (for any portfolio of two securities)

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