Question: Compute the (a) expected return and (b) standard deviation of the following investments: (c) Suppose you form a portfolio that consists of 60 percent Investment

Compute the (a) expected return and (b) standard deviation of the following investments: (c) Suppose you form a portfolio that consists of 60 percent Investment ABC and 40 percent Investment RST. Compute the expected return and standard deviation of the portfolio. (d) Compare the portfolios standard deviation with the individual investments standard deviations.

Probability	r abc	r rst
0.1	22.0%	-2.0
0.6	12.0	12.0
0.3	2.0	30.0

With the interpretation

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