Use the information below to answer the questions. Express your answer in percent with two digits after the decimal. Do not include a percent sign with your answer.

Use the two probability distributions below to answer this question

PrRet(A)Ret(B)

.2-5%10

.685

.212-20

1- Find the expected return of a portfolio composed of securities A and B if an investor invests $6000 in A and $9000 in B.

2- Find the variance of the portfolio's returns

3- Why does the portfolio of A and B have less risk than either of the individual securities?