For a., b., and c. of this question please continue to work with the information pertaining to Asset X and Asset Y from Question 2 of this Section.

DO ALL MATH PROCESS WORK WITH 8 DECIMAL PLACES OF PRECISION

a. What is the expected return on a portfolio composed of 40% in security X and 60% in security Y? Be sure to show your work

b. What is the standard deviation of the portfolio described in a. above? Be sure to show your work.

c. How does that portfolio risk compare to the risk of each of the individual assets? Does the creation of this portfolio have potential value to an investor? Be sure you offer a brief, but clear, explanation of the comparisons you make. Your response should provide a logical presentation of the outcomes observed.