Short Notes:

There are numerical questions, you can answer them using either mathematical formula (if possible) or financial calculator. No matter what method you use, you need to show the calculation steps (for math formula) or function buttons that you click. Showing no steps will be discounted significantly.

Question 1 (10 points) Please use our Chapter 8 PPT slides to answer the question:

Suppose a portfolio manager wishes to construct a portfolio using two securities Coll and USR, both of their return data are shown in the Slide 5 with the title Hypothetical Investment Alternatives. Specifically, the manger allocates $60,000 in the Coll and $30,000 in the USR. Please calculate (1) Portfolio Expected Return (2) Portfolio Standard Deviation