A collection of finandial assets and searities is refered to as a portfellio. Most Individuals and Istitutions invest in partfolle, making portfollio risk analysis an Integral part of the fild of finance. Juest Bkon stand-alone ansets and securitles, portfolios are also exposed to risk. Partfollo rist refers to the possiblility that an investment portfollo will not generabe the Investor's expecbed rate of return. Analyzing portfolio risk and rneturn involves the understanding of expected returns from a portfollo. Consider the following case: Andre is an amabeur investor who holds a small portfolle condisting of only four stocks. The stock holdings in hs portollo are shown in the following table: Stock Artemis Inc. Babish & Co. Comell Industries Danforth Motors 20% 30% 35% 15% 8.00% 14.00% 1300% 300% 31.00% 35,00% 38. 00% 40.00% What is the expected return on Andre's stock portfolio? 0 1620% o 10.80% 8:10% 14.58% Supposo each stock in Andre/w portfolio has oorreeton oreiont or 040 tp-0 40) mth eachO' the other stod The market's average standed deviation is approdmately 20%.nd the rted average of theisk or the individual securities in the pirtially diversified four stock portfolo is 36 were added to the portfole, what offect would this tieve on the porthoho's standard deviation (ol2 O It would stay constant 0% O It wouid gradually sette at apareximately 50 O It would decrase graduailysetting at abot e here to search