A collection of financial assets and securites 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. Portfollo risk refers to the possibility that an investment portfolio will not generate the investor's expected rate of return. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: What is the expected return on Andre's stock portfolio? 8.03%10.70%14.45%16.05% Suppose each stock in Andre's portfollo has a correlation coefficlent of 0.4(=0.4) with each of the other stocks. If the weighted average of the risk. of the individual securities (as measured by their standard deviations) included in the partially diversified four-atock portfolio is 35 is, the portfolio's standard deviation (p) most likely in 35%