1. An investment has an expected return of 7.65 percent and standard deviation of 3.58 percent. Another investment has an expected return of 13 percent and a standard deviation of 2.35 percent and is counter cyclical to the first investment. What is the expected return of the portfolio and its standard deviation if both are combined into a portfolio with 60 percent invested in the first investment and 40 percent in the second? Assume the correlation coefficient (rij) is -.35.