Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table:

Stock	Percentage of Portfolio	Expected Return	Standard Deviation
Artemis Inc.	20%	6.00%	31.00%
Babish & Co.	30%	14.00%	35.00%
Cornell Industries	35%	11.00%	38.00%
Danforth Motors	15%	3.00%	40.00%

What is the expected return on Andres stock portfolio?

14.55%

13.10%

7.28%

9.70%

Suppose each stock in Andres portfolio has a correlation coefficient of 0.4 ( = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 36%, the portfolios standard deviation (pp) most likely is 36%.