An investor decides to invest a certain amount of money in a portfolio consisting of Security 1 and Security 2. The investment share in Security 1 is 60%, and the remainder in Security 2. Given the following information for two different securities: Security 1: Real interest rate: 4% Inflation premium: 3% Risk premium: 2% Securities 2: Real interest rate: 3.5% Inflation premium: 2.5% Risk premium: 3% Questions: a. Calculate the nominal interest rate for each security. b. Calculate the average nominal interest rate earned by the portfolio. c. If expected inflation rises to 4% for Security 1 and 3% for Security 2, how will this affect the nominal interest rate of each security and the portfolio as a whole