1. Systematic risk and unsystematic risk are two main types of risks in the stock market. Describe these two types of risks and explain how the risks affect the standard deviation and correlation in the above table. Please provide examples in your explanation.(8 marks)

	Share A	Share B
Expected Return	15%	10%
Standard Deviation	10%	5%
Correlation	25%

John has invested w₁% and w₂% of his capital in share A and share B respectively. Suppose w₁% + w₂% = 100%. Also, w₁ andw₂ are non-negative numbers.