1. b. Using the data in the table below calculate the expected return and risk of any equally weighted portfolio of two of the stocks listed below and an equally weighted portfolio of any three of the stocks listed below. (15 Marks)

Returns	0.25	0.15	0.10	0.18	0.23	0.46	0.24
	Apple	Microsoft	Target	Starbucks	Goodyear	Ford	Berkshire Hathaway
Standard Deviation	41.0%	26.0%	28.0%	32.0%	56.0%	59.0%	17.0%
Correlations
Apple	1	0.48	0.38	0.38	0.31	0.23	0.06
Microsoft	0.48	1	0.39	0.36	0.33	0.36	0.16
Target	0.38	0.39	1	0.39	0.50	0.47	0.27
Starbucks	0.38	0.36	0.39	1	0.41	0.27	0.20
Goodyear	0.31	0.33	0.50	0.41	1	0.58	0.38
Ford	0.23	0.36	0.47	0.27	0.58	1	0.27
Berkshire Hathaway	0.06	0.16	0.27	0.20	0.38	0.27	1