The following equation can be used to compute the risk of a three-security portfolio as follows:

You have decided to invest 40 percent of your wealth in Security A, 20 percent in Security B, and 40 percent in Security C. The following information is available about the possible returns from the three securities:

Security A				Security B				Security C
Return		Probability		Return		Probability		Return		Probability
14	%	0.45		10	%	0.50		18	%	0.60
18		0.30		14		0.35		22		0.25
20		0.25		16		0.15		24		0.15

Compute the expected return of the portfolio and the risk of the portfolio if the correlations between returns from the three securities are = 0.65; =0.55; and =0.50.

Do not round intermediate calculations. Round your answers to two decimal places.

Expected return of the portfolio: %

Risk of the portfolio: %