1.Identify a large bank or any large corporation listed on the JSE or your nominated stock market. Scrutinise their publicly available information to gauge how effectively they use diversification to mitigate credit portfolio risks. (10 marks)

2.Maputo Development Bank has a credit portfolio of two loans for R4 200 000 each. One loan has an expected return of 17% and a standard deviation of 25%. The other loan has an expected return of 9% and a standard deviation of 15%. It is determined that the covariance between the two loans is 2%. Determine the expected return and standard deviation of the portfolio. (10 marks)