Mrs Mi is a 66-year-old female paediatrician who would like to hire you to offer her financial advice. In your first meeting, you note that she has an interest-only mortgage worth 120,000 for which she is currently charged a 1.50% interest rate. She holds savings of 25,000 in her bank account for which she is earning a riskless net interest rate of 1.00%. Mrs Mi says that the house is currently worth 250,000. You run some analysis and calculate that the standard deviation for this is equal to 40,000. Calculate the expected one-year return on her portfolio and the overall standard deviation for it. Explain to Mrs Mi what risks she may face in her investment portfolio, and briefly outline how diversification can help her.