Your client asks you to create a two$-$

stock portfolio having an expected return of $15\%$ and standard deviation of $25\%.$ The client

specifies that the portfolio must include $60\%$ of the stock $$Merlyn$($named for her beloved

mother...$)$ which has an expected return of $13\%$ and a standard deviation of $20\%.$

a$.$ What should be the return statistics of the second stock you$$ll combine in this portfolio, assuming this stock has zero correlation with Merlyn? What is the expected return for the second stock? What is the standard deviation for the second stock? b$.$ What should be the return statistics of the second stock you$$ll combine in this portfolio, assuming this stock has covariance of $0\mathrm{.}01$ with Merlyn? What is the expected return for the second stock? What is the standard deviation for the second stock?