1. Month	Market Index (points)	Hydro Ltd ($)	Luna Ltd ($)
   1	5745	21.00	0.56
   2	5976	23.55	0.66
   3	6057	21.99	0.71
   4	6167	23.70	0.90
   5	6147	23.90	0.90
   6	6117	24.65	0.95
   7	5869	24.06	0.93
   8	6072	26.82	1.00
   9	6124	30.04	1.10
   10	6290	30.90	1.15
   11	6366	31.59	1.48
   12	6427	28.44	1.66
   13	6325	26.50	1.46
   14	5913	23.66	1.31
   15	5749	21.84	1.49
   16	5709	24.63	1.52
   17	5937	24.62	1.50
   18	6252	24.51	1.50
   19	6261	26.08	1.57
   20	6418	29.12	1.55
   21	6491	30.72	1.61
   22	6699	30.65	1.57
   23	6896	29.75	1.62
   24	6698	30.60	1.57
   25	6800	31.62	1.85
   26	6772	33.92	1.91
   27	6948	33.67	1.97
   28	6802	36.20	1.98
   29	7121	33.11	2.23
   30	6501	21.35	2.05
   31	5342	25.49	2.02
   32	5625	25.72	1.99
   33	5933	25.50	1.93
   34	6031	26.18	1.93
   35	6078	28.37	1.94
   36	6245	29.97	1.85
   37	6178	28.63	1.78
   38	6256	32.06	1.75
   39	6742	31.00	2.19
   40	6850	31.06	2.40
   41	6895	30.36	2.29
   42	6955	34.35	2.17
   43	7080	37.17	2.15
   44	7320	41.05	2.06
   45	7450	43.09	1.92
   46	7611	41.64	2.10
   47	7723	45.67	2.13
   48	7897	46.95	2.19
   49	7689	46.68	2.20
   50	7712	44.11	2.20
   51	7658	43.57	2.14
   52	7802	40.35	2.20
   53	7793	37.27	2.26
   54	7315	36.70	2.18
   55	7824	33.66	2.19
   56	7789	33.79	2.29
   57	7724	34.38	2.34
   58	7455	35.30	2.25
   59	7360	36.25	2.33
   60	7477	36.44	2.25

   4-Determine the expected return and standard deviation of a two-asset portfolios comprised of Hydro Ltd and Luna Ltd; Assume equal weightings of each share within the portfolio. Interpret your results and comment and illustrate the impact on risk when combining shares into a portfolio. What is the exact amount of risk reduction when combining these 2 shares in the portfolio? What has caused this risk reduction in the portfolio and what specific risk has been eliminated in this case?