B. You are interested in adding the stock of Alfeta (Alf) to your holdings by taking $2000 from each of Del and Gam. Alf has an expected return of 2.15%, a variance of 1.925; Del has an expected return of 10.45%, a variance of 5.9475; Gam has an expected return of 6.3%, a variance of 38.01. The covariance of Alf with Del is -2.675; the covariance of Alf with Gam is 5.355; and the covariance of Del with Gam is -14.235.

a. Calculate the expected return, E(Rp), of this new portfolio.

b. Calculate the risk, p of this new portfolio.