ABC Investment Ltd has set up a portfolio that comprises Gold shares and Silver shares. 

The following information relates to these shares.

 

	Gold	Silver
Expected return	17%	12%
Standard Deviation of return	15%	5%
Correlation of coefficient	-0.5

 

Required:

1. Determine the expected return of the portfolio if 65% of Gold shares and 35% of Silver shares are combined to form the portfolio.
2. Determine the risk of the portfolio by calculating portfolio standard deviation given the same portfolio combination.
3. For the past 5 years, the portfolio has the consecutive rate of returns of 12%, 15 %, -14%, 13% and 16%. Calculate the geometric average return of this portfolio for the period.