R1 and R2 are random returns with the following statistics:

E[R] SD(R) R1 8% 15% R2 3% 7%

In addition, the correlation coefficient is corr(R1, R2) = 0.4.

(a) What is the average of 10 R1 + 2 R2?

(b) What is the variance of 3 R2?

(c) What is the covariance between R1 and R2, cov(R1, R2)?

(d) What is the variance of 2 R1 + 3 R2, var(2R1 + 3R2)?

(e) What is the standard deviation of 2 R1 + 3 R2, SD(2R1 + 3R2)?