a. The level of portfolio risk is usually a function of four major variables.

Explain the statement in relation to the variables contribution to portfolio risk.

b. if the standard deviations of two assets are respectively 5% and 3%, what proportion of fund should be invested in each, assuming the returns on the assets are independent of each other?

c. Calculate the return on the portfolio in (b), given that the retuns on the assets are 15% and 12% respectively