QUESTION $3(18$ marks$)$ Ms$.$ Peterson has recently received a lump$-$sum payout of R$825000.$ She will not require the funds presently and, therefore, wishes to invest it to generate a return. Ms$.$ Peterson has been diligently observing and carefully evaluating the investment market. She has identified three entities whose shares she is interested in potentially purchasing. Entity Share$$s expected return Share$$s standard deviation Entity Air $26\%13\%$ Entity Earth $18\%8\%$ Entity Water $37\%19\%$ Ms$.$ Peterson wishes to construct an investment portfolio in order to diversify and minimise the risk. PORTFOLIO $1$: Invest R$251000$ in Entity Earth and R$574000$ in Entity Water. The covariance of the portfolio is $-24\%.$ PORTFOLIO $2$: Purchase shares with R$710000$ in Entity Air, with the remaining R$115000$ invested in Entity Earth. The covariance of the portfolio is $-29\%.10$ HFMN$230-1\_$Jan$-$Jun$2025\_$FA$2\_$V$3\_$ES$\_27012025$ REQUIRED: $3\mathrm{.}1$ Calculate the expected return of Portfolio $1.(7$ marks$)3\mathrm{.}2.$ Calculate the standard deviation of Portfolio $2.(11$ marks$)$