Answer all please

1. A portfolio is invested equally in two asset classes: bonds with expected return of 3.0% per annum and volatility of 18.0%; equities with expected return of 7.0% per annum and volatility of 26.0%. Their correlation is 0.40. If the portfolio re-allocates from equally weighting to 60% equities and 40% bonds, what is the net change to the portfolio's expected return? A. No change to portfolio's expected return B. Increase of 0.4% C. Increase of 0.8% D. Increase of 1.2% 2. A portfolio is invested equally in two asset classes: 50% in bonds with expected return of 4.0% per annum and volatility of 20.0%; equities with expected return of 9.0% per annum and volatility of 32.0%. If the portfolio's variance is 0.04520, what is the implied correlation (of returns) between bonds and equities? A. zero B. 0.019 C. 0.300 D. 0.467 3. A portfolio is 40% invested in Colonel Motors stock which has a volatility of 18.0% per annum and 60% invested in Separated Edison which has a volatility of 38.0% per annum. Their correlation is 0.24. Assuming the mean daily return is zero, what is the 1-day 99% confident delta-normal value at risk of the portfolio? i.e., the delta-normal VaR with a holding period of one day and a confidence level of 99%. Assume 250 trading days per year. A. 1.61% B. 1.90% C. 2.65% D. 3.75%