There is a portfolio of two assets - 30% investment in Stock A and 70% investment in Stock B. The correlation of returns between Stock A and Stock B is 0.50. The covariance between these two stocks is 0.0043, and the standard deviation of the return of Stock B is 26%. Requirements: (a) Please calculate the standard deviation of the return of Stock A. (b) Please calculate the standard deviation of the return of portfolio. (c) If we increase more and more different stocks in the portfolio, will it always decrease the risk (standard deviation) of the return of the portfolio? Please explain your answer in detail.

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