Assume that a portfolio is 60% invested in the U.S. stocks and 40% in the rest of the world. Annualized expected returns are 7% and 9% for the U.S. stocks and the rest of the world, respectively. Using the following information, standard deviation in the U.S. stocks, _USA = 15%; standard deviation in the rest of the world, _WORLD = 16% and the correlation between the U.S. stocks and the rest of the world, r_USA,WORLD = 0.50, calculate the risk and return of the international portfolio (must show your workings).