1. Peter is considering investing in a portfolio of 3 stocks. The return, risk and correlation coefficients of these stocks are shown below.

	Stock A	Stock B	Stock C
Expected return	5%	10%	15%
Standard Deviation	10%	20%	30%
	Correlation
	Stock A	Stock B	Stock C
Stock A	1.0	0.0	0.5
Stock B	0.0	1.0	0.5
Stock C	0.5	0.5	1.0

If Peter invests $5,000 in stock A, $15,000 in Stock B and $30,000 in stock C, compute his expected return and risk.