The Canadian Musician/Artist Aubrey Drake Graham, known by his stage name Drake" has invested 70% of his money in share A and the remainder in share B. He assesses their prospects as follows:

	A		B
Expected return (%)	15		22
Standard deviation (%)	20		24
Correlation between returns		.4

A) What are the expected return and standard deviation of returns on this two share portfolio?

(Do not round intermediate calculations. Round your answers to 2 decimal places.)

E(R_p)=r_p= x₁r₁+ x₂r₂ (where x₁ + x₂ = 100% of the portfolio)

s_p²= x₁²s₁²+ x₂²s₂² +2(x₁x₂r₁₂s₁s₂) =

s_p= Standard Deviation or volatility of the Portfolio =

B)

Expected return =

Variance =

Standard deviation =

C)

How would your answer change if the correlation coefficient were 1, 0 or .4? (Round your answers to 2 decimal places.)?