A collection of financial assets and securities is referred to as a portfollo. Most individuals and institutions invest in a portfollo, makiog portfolio risk analysis an integral part of the finid of finance. Nust like stand-alone assets and securities, portfollos 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. Analyeing 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 pertfolio are shown in the fotldwing tabiet: What is the expected return on Andre's stock portfolig? 14.45%16.05%10.70%5.03% Suppose each steck in Andrey porto stion coefficient of 0.4(=0.4) aith each of the other stocks. If the weighted wnerage of the risk of the individual securities (as measu indard devations) included in the partialy alvershed four-stock portfolio is 35%, the partfolio's standard devation (j) most likely is 35%