Year Returns Alpha Returns Bravo

1 -5% 20%

2 7.5% -10%

3 3% 15%

4 -3% -5%

5 12.5% 30%

If I invested 50% of my wealth in share Alpha and 50% of my wealth in share Bravo, what would be the expected return of the portfolio? Would you expect the variance of your combined investment in Company Alpha and Company Bravo to be the simple average of the variance of the two investments? Explain your answer.