An investment policy dictates that holdings of the three risky assets are split 50%, 30%, 20% with highest proportion in the risky asset with the highest expected return and the lowest proportion in the risky asset with lowest expected return.

Expected Return = (asset (d) 4.0 asset (c) 6.3 asset (b) 7.5 asset (a) 10.2)

Variance = asset (d) 0 asset (c) 90 asset (b) 120 asset (a) 210

Covariance = asset (d) and any other 0 ,asset (b) and (c) 20 ,asset (a) and (c) 45 . asset (a)and (b) 60

1.)Calculate the expected return of the risky portfolio?

2.)Calculate the standard deviation of the risky portfolio. [20%]

3.)If the risk free asset makes up 25% of the total portfolio, What is the total portfolio's expected return?

4.)What is the total portfolio's variance?

5.)If the total portfolio above is considered to be the market portfolio, what would be the expected return of a share with a to the market portfolio of 1.8?