Mr. Lowe wants to add Third Corp. to his portfolio. His actual portfolio consists of First Corp and Second Corp with weights of 40% and 60% respectively. That portfolio has a (rho) of .7. When he adds Third Corp, he wants the portfolio to have 50% weight of Third Corp and the rest in First and Second Corp in their original weights. The portfolio of the 3 companies would have a = -.25.

The following table has the financial data for the 3 companies.

Company	Average Return	Weight
First Corp	10%	40%	20.00
Second Corp	16%	60%	27.50
Third Corp	18%	50%	31.00

What is the expected return of the new portfolio with the 3 companies?

What is the standard deviation of new portfolio with the 3 companies?