CHUI traders have invested in two securities traded at the Nairobi Stock

Exchange (NSE). The security X Possible returns are estimated as 11%,

10%, 8%, 7%, 5%, 4%, 3%, 2%, 0% and 0%, for the periods one to ten.

Those of Security Y are estimated as 15%, 13%, 12%, 11%, 9%, 6%, 5%,

4%, 3%, and 2%, for periods one to ten.

Each possible return has an equal chance of being realized.

Required

If Goal traders portfolio formation is Ksh 50,000, committing equal

amounts in each asset, determine the Portfolio risk

b)Supposing X and y possible returns changed as follows;

x=11%,10%, 8%, 7%, 5%, 4%, 3%, 2%, 0% and 0%, for the periods one to ten.

y = 2% ,3% ,4% ,5%, 6% ,9% ,11% ,12 %,13%, 15% for the periods one to ten and each possible return has an equal chance in both cases