You hold a portfolio consisting of two stocks. Stock Abc has an expected return of 20% and a standard deviation of returns of 25%. Stock Xyz has an expected return of 12% and a standard deviation of...

Extracted text: You hold a portfolio consisting of two stocks. Stock Abc has an expected return of 20% and a standard deviation of returns of 25%. Stock Xyz has an expected return of 12% and a standard deviation of returns of 10%. The correlation coefficient between the stock returns of Abc and Xyz is 0.3. Stock Abc comprises 60% of the portfolio, while stock Xyz comprises 40% of the portfolio. a. What is the expected return of your portfolio? b. What is the standard deviation of this portfolio's return? c. How would your answer in part b) change if you added five more stocks (with similar standard deviations of returns) to your portfolio? You do not need to provide an actual number – just answer whether the standard deviation would go up, stay the same, or go down. Please explain your answer for full credit. O Focus MacBook PrO