Security X has an expected return of 15% and a standard deviation of 35%, and is to be continued in a portfolio with Security Y. The correlation between both assets is 0.75. An investor plans to invest $3000 in Security X and $7000 in Security Y. (a) What will be the expected return om the portfolio? (b) If the investor has a risk tolerance of only 25% or less, will this be achieved? Show with calculations accurate to two decimal places. The pay-off matrix of Security Y is:

Economic outlook	Probability	Rate of Return
Recession	0.10	-20%
Below Average	0.15	-10%
Average	0.30	10%
Above Average	0.25	18%
Boom	0.20	50%