QUESTION 1

Use the following information to calculate the percentage expected return a portfolio that is 47.5 percent invested in 3 Doors, Inc., and the rest invested in Down Co.:

	3 Dorrs, Inc.	Down Co.
Expected return	28%	5%
Standard deviation	35	11
Correlation	72

QUESTION 2

Use the following information to calculate the percentage standard deviation of a portfolio that is 61.4 percent invested in 3 Doors, Inc., and the rest invested in Down Co.:

	3 Dorrs, Inc.	Down Co.
Expected return	16%	11%
Standard deviation	41	33
Correlation	0.76