(1) Given the following information calculate the standard deviation of returns of a portfolio that combines government bonds with the market portfolio.

Rm = .11

Rf = .05

Standard Deviation of market return = 0.12

Enter your answer as a decimal accurate to three decimal places.

Proportion invested in Rm = 0.6

(2) Given the information in the table below calculate the standard deviation of a portfolio combining Asset A and Asset B in the proportions of 40% and 60%, respectively. A correlation of .5 exists between A and B.

Asset SD Weight

A 0.10 0.4

B 0.15 0.6

(3)Calculate the expected return from a portfolio consisting of three securities with the following expected returns and weights:

Expected Return Weight

Security A 0.10 40%

Security B 0.12 40%

Security C 0.14 20%

"Please show how to caluculate for understanding. Thank you. "