You are expected to explain diversification effect by using an example of a two-stock portfolio (stock A and Stock B) to show holding the portfolio will bring benefit to investors than holding the two stocks individually. Please create the two stocks with your own values of return and standard deviation of each stock and the correlation coefficient between the two. Clarify your initial inputs, demonstrate your calculations, and explain what your example indicates about diversification. (20 points) Suppose that Congress sets the top personal tax rate on interest and dividends at 43% and the top rate on realized capital gains at 19%. The corporate tax rate stays at 22%. Assume capital gains are half of equity income. a. Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are realized immediately. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Difference b. Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are deferred forever. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Difference