Question 2 (27 Marks): A portfolio consists of three securities Obsidian, Woolan and Rhyolte with the following parameters: An investor can either invest in Portfolio 1 or Portfolio 2 in the proportion given below. Required: (a) Calculate the expected return and standard deviation for each of the two portfolios (2 Decimal Places). [21 Marks] (b) Explain the diversification effect and the relationship between correlation of assets. [ 6 Marks]