A portfolio consists of two assets, Bonds and stock. The two invested amount is $2,000,000 of which 60% is invested in Bonds and the balance is invested in stocks. The rate of return on the bonds is 15% with a standard deviation of 12%. The return on the stock is 25% with a standard deviation of 20%. The coefficient of correlation between the bond and stock is 0.75 or 75%.

a. Calculate the portfolio expected rate of return?

b. Calculate the risk of the portfolio?