A foreign institutional investor (FII) proposes to invest $ 5 million in an Indian security with a beta of 1.25 and standard deviation of returns of 9%. The holding period of investment will be one year. The current rupee-dollar exchange rate is Rs.43.50/$. The expected appreciation of rupee against dollar over the period is 2% with a standard deviation of 6%. The expected return from the market portfolio in India is 16% and the correlation between the return on security and the exchange rate is 0.66. The risk free rate of return in India is 5%. You are required to calculate the expected return and risk for the FII