$($d$)$ You are given the following information about a portfolio which consists of three

stocks, $A,B$ and $C$ :

Calculate the expected return of the portfolio.

$(4$ marks$)$

$($e$)$ Using an appropriate diagram, show and explain, the impact of correlation on risk,

for a portfolio of two risky assets.

$(6$ marks$)$

$($f$)$ By using a suitable diagram and example of your own, show and explain what will

happen to expected return, variance of a portfolio and the efficient frontier, if a risk

free asset is introduced along side risky assets.$(7$ marks$)$