Question 03 : A client has requested your assistance in evaluating risk and return in a portfolio of investments . The proposal is to have a Fox investment in Melbourne Limited and a 30^ investment in Perth Limited . Probability distributions of these securities would be as follows : Melbourne Led Perth Led ` Returns ` Returns Security Probability* 2^ 33^ 20 $ 1} 10 25 26 % Required; Identify and measure the magnitude and volatility of organizational risks to determine the extent of risk exposure of the given Portfolio : ( 1 ) Calculate the expected return and standard deviation for each security . ( 11 ) Calculate the weighted average standard deviation . ( I'll ) Calculate the expected return and standard deviation for the portfolio of securities . ( iv ) Calculate the correlation coefficient and explain what this particular coefficient* indicates . ( V ) Based on the results of your calculations show how the portfolio of securities is able* to reduce risk . ( vi) What is the name of the risk that can be reduced