What does the correlation between Reynolds and Hasbro tell you about combining these assets in a portfolio with regards to risk and return?

Assume the risk-free rate is .44%. Answer each question in your simulated role as financial managers — in strategic, well-thought-out, complete sentences. Watch the Portfolio Theory videos in Blackboard for help with the calculations using Excel.A.Estimate and compare the returns and variability (standard deviation over the given five years) of Reynolds and Hasbro with that of the S&P 500 Index which represents the market return. Which stock appears to be the riskiest and why? B.Suppose Sharpe’s position had been a.) Portfolio 1: 99% of equity funds invested in the S&P 500 and 1% in Reynolds or b.) Portfolio 2: 99% of equity funds invested in the S&P 500 and 1% in Hasbro. Estimate the standard deviation and beta for each of these portfolios. How does each stock (Reynolds and Hasbro) affect the variability of the equity investment? How does this relate to your answer in question A? C.Use the slope formula in Excel to determine beta for each stock and each portfolio. Explain the role of stock betas with respect to portfolios.D.How might the expected return of each stock relate to its riskiness? E.In what stock(s), if any, should Sharpe invest and why? F.What does the correlation between Reynolds and Hasbro tell you about combining these assets in a portfolio with regards to risk and return?