This is an investment portfolio diversification related case of Ela Inc. in the USA which may invest in the UK. The details of other information given below:

	Existing Business	Characteristics of the Proposed Projects		Weights of the Investment Plans
		If located in the US	If located in the UK
Mean Expected Annual Return on Investment (after-tax)	20%	25%	25%	Plan A USA: Existing: 70% New: 30%
Standard Deviation of Expected Annual After- tax Returns on Investment	0.10	0.09	0.11	Plan B USA: Existing: 70% UK: New : 30%
Correlation of Expected Annual After- tax Returns on Investment with After-tax Returns of Prevailing US Business	----	0.80	0.02

If the company invests in Plan A, what is the expected weighted return for it?

1. 20.00%
2. 21.00%
3. 21.50%
4. 22.00%
5. None of the above

If the company invests in Plan B, what is the standard deviation of the portfolio (P)?

1. 0.07098
2. 0.08098
3. 0.09215
4. 0.07798
5. None of the above