Security M	Security N
Expected return	15%	18%
Standard deviation	9%	12%

Covariance between the returns of securities M and N is -0.0048. Risk-free rate is 5%. Risk premium of the market portfolio is 6% and market portfolios standard deviation is 5%. }

a. Calculate the portfolio return if you invest $3,000 in security M and $7,000 in Security N.

b. Calculate the risk in such a portfolio (as in a above).

c. Calculate the weight of securities M and N in your portfolio if you want to achieve a return of 13%.

d. Calculate the risk in such a portfolio (as in c above).