1. Find the expected return and total risk of Samsung and LG.

2. You decide to make a portfolio of 70% Samsung and 30% LG. Find the expected return and total risk of the portfolio.

You should use the following information when needed. If you want, you can detach this information sheet and do not need to submit it. Return on Market 9% Risk-Free Rate 2% Corporate Tax Rate 35% Historical equity returns for Samsung and LG: 1 Samsung LG 5% -10% 2 25% 18% 3 -16% 15% 4 -10% 7% Correlation coefficient (rho) between Samsung and LG: 0.4