Green and Gold Farms has two investment alternatives. The correlation coefficient between the two investments is 0.3. The investment alternatives are:

	Farm Expansion Opportunity	Main St Business
Expected rate-of- return	0.08	0.11
Standard deviation	0.04	0.10

a. Find the expected value, the standard deviation and variance of the portfolio if Green and Gold Farms invests 70% in the Main St Business investment and 30% in the Farm Expansion Opportunity investment.

b. Find the expected value, standard deviation and variance of the portfolio if Green and Gold Farms invests 30% in the Main St Business investment and 70% in the Farm Expansion Opportunity investment.

c. How do the answers in part (a) and (b) compare? Why are they different?