A collection of financial assets and securities 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. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Ava is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in her portfolio are shown in the following table: Stock: Percentage of Portfolio Expected Return Standard Deviation Artemis Inc.. 20% 6.00% 38.00% Babish & Co. 30% 14.00% 42.00% Cornell Industries 35% 13.00% 45.00% Danforth Motors 15% 3.00% 47.00% What is the expected return on Ava's stock portfolio? 15.60% 10.40% O7.80% 14.04% 14.04% Suppose each stock in Ava's portfolio | the individual securities (as measured standard deviation (0p) most likely is, less than more than equal to ion coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the risk of dard deviations) included in the partially diversified four-stock portfolio is 43%, the portfolio's 43%.