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Two companies Amber and Bolt are manufacturers of glass. The securities of the companies are listed and traded in the New York Stock Exchange. An

Two companies Amber and Bolt are manufacturers of glass. The securities of the companies are listed and traded in the New York Stock Exchange. An investors portfolio consists of these two securities in the proportion of 5/6 and 1/6 respectively. Ambers security has an expected return of 20% and a standard deviation of 8%. Bolt has an expected return of 15% and a standard deviation of 5%. The correlation coefficient between the two securities is 0.6. Calculate the expected return and the standard deviation of the investors portfolio.

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