The following table shows the expected return for each of the 3 stocks. It also shows the set risk level of 1.1% ER Weights x 0.004078 0 y 0.00558 0.4507 Z -0.00223 0.5492 1 ERP Variance Portfolio 0.00012 Std. deviation Portfolio 0.011 ??? QUESTION 3 (6 marks): 3a) Calculate the expected return of the portfolio (ERP) 3b) If this portfolio is optimal, then what can you conclude about its ERP? 3c) How is the ERP at a specific level of risk achieved? in other words, what allows ERP at a specific level of risk to differ from the expected portfolio return at a different level of risk? The following table shows the expected return for each of the 3 stocks. It also shows the set risk level of 1.1% ER Weights x 0.004078 0 y 0.00558 0.4507 Z -0.00223 0.5492 1 ERP Variance Portfolio 0.00012 Std. deviation Portfolio 0.011 ??? QUESTION 3 (6 marks): 3a) Calculate the expected return of the portfolio (ERP) 3b) If this portfolio is optimal, then what can you conclude about its ERP? 3c) How is the ERP at a specific level of risk achieved? in other words, what allows ERP at a specific level of risk to differ from the expected portfolio return at a different level of risk