The following table provides historical annual returns of two stocks A and B.

Years	Stock A	Stock B
2018	0.4	-0.05
2019	-0.1	0.4
2020	0.35	-0.10
2021	-0.05	0.35

An investor would like to create of portfolio consisting of 30% of stock A and 70% of stock B.

1. Calculate the average portfolio return.

The average portfolio return is equal to Answer.

2. Calculate the variance of the portfolio.

The variance is equal to: Answer

Note: In question 2, include 4 decimal points (0.0121, 0.0244...)

3. Calculate the portfolio risk in percentage terms.

The portfolio risk is equal to Answer%.

Note: In question 3, include two decimal points

4. Did the creation of a portfolio reduce the investment risk? Explain why in the reason box.

Yes

No