Consider two assets, A and B. A earns 4%, -5%, or 3%, in equal-likely scenarios 1, 2, and 3. B earns -5%, 3%, or 4%, in scenarios 1, 2, and 3. Compute the expected rates of return and Std. Dev. for each asset, A and B. Now, consider a portfolio of assets A and B, where the investor holds a fraction of his portfolio in each asset: 0.1 in A and 0.9 in B. In this new diversified AB portfolio, compute the Std. Deviation and report this as your answer. Compare the new SD to that of each asset's individual SD.