7. Portfolio expected return and risk A collection of financial assets and seaurities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor's expected rate of return m. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. consider the following case: dre is an amateur investor who holds a small portfolio consisting of only four stocks. The stook holdings in his portfolio are shown in the following table: Percentage of Expected standard Deviatiorn 24.00% Portfolio 20% 30% 35% 199 stock Return 6.00% Artemis Inc. Babish & Co. Cornell Industries Danforth Motors 28.00% 14.00% 13.00% 3.00% 31.00% 33.00% what is the expected returm on Andre's stock portfolio? 15.60% 7,80% 10.40% 14,04% suppose each stock in Andre's portfolio has a correlation coefficient of 0 4 ( 4) with each of the other stocks. if the weighted average of the risk of the individual secunites (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 29%, the portfolio's standard deviation (%) most likely is 29%