just b and c please

a. Sun Plc has been specially formed to undertake two investment opportunities. The risk and return characteristics of the two projects are shown below: X Y Expected Return 10% 20% Risk (standard deviation) 4% 7% Sun plans to invest 60% of its available funds in Project X and 40% in Project Y. The directors believe that the correlation coefficient between the returns of the projects is +0.18. b. Explain the principle of diversification. Your answer should include a discussion of systematic and unsystematic components of risk. (8 marks) c. What return would a well-diversified investor expect from a Company, given the following information: JA 20%, OM 10% and PAM = +0.6 R 6%, RM 13%