Question 2 Asset 1 has an expected return of 10% with a standard deviation of 25%, asset 2 has an expected return of 15% and a standard deviation of 35%. The correlation coefficient between their returns is 0.2. Asset 3 is a risk-free bond with an expected return of 8%. What is the expected portfolio return and risk (standard deviation) of the portfolio consisting of 40% Asset 1, 40% asset 2 and 20% of risk-free asset?