1. Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for A and B. Return Year 10% 5.9% 4.6% 8% 9.5% 12% 14% 6% 2.5% 1% -2% 0% 1.5% 9% 7.5% 8% 11% 9.8% 7.5% 10% 2. If the investor invests in the two investments above 40% in A and 60% in B, what is the portfolio risk? Assume that the correlation between A and B is -0.75