Consider a case where you are faced with an investment opportunity in which you are trying to entice a set of investors to invest $4.5 million in the landscaping and nursery industry. You have performed significant market research and have worked up returns estimates for four distinct opportunities within the industry that could each be explored independently.

Through your research you have estimated:

Correlation of returns with....

Opportunities ROA Std. Dev. ROA. (TN) (WG) (SP) ( RS)

Wholesale Tree Nursery (TN) 7% 5% 1 .10 .10 .15

Wholesale Greenhouse (WG) 18% 30% .10 1 . 20 .40

Wholesale Sod Production (SP) 15% 18% .10 .20 1 -.20

Retail Garden Store (RS) 12% 20% .15 .4 -.20. 1

You are contemplating seven different portfolios. Four of your portfolios are "pure" investments of 100% of the investment in each of the singular opportunities. Beyond those four, you are considering (5) an even investment of one quarter into each of the four areas, (6) an even investment of one third into each of the wholesale activities, and (7) forty percent invested in Wholesale Greenhouse and twenty percent into each of the other three activities.

1. Determine the expected monetary return for the $4.5 million investment for each of the seven portfolios as well as the standard deviation of that monetary return for each.