QUESTION 1 (10 marks) 1. Define what is meant by the following terminologies: (2 marks each) a) Portfolio b) Portfolio weight C) Expected retum d) Variance e) Standard deviation QUESTION 2 (10 marks) Calculate the expected return of a portfolio with the following three stocks. Stock A has expected return of 3% and makes up 25% of the portfolio. Stock B has expected return of 3% and makes up 50% of the portfolio, Stock C has expected return of 9% and makes up 25% of the portfolio, THE END - O