You are considering investing in two securities, A and B and have the following information:

Security	Possible Returns (%)	Probability
A	30	0.3
	25	0.4
	20	0.3
B	60	0.2
	40	0.5
	20	0.3

a) Calculate the expected return for each security separately and for a portfolio of 70% investment portion in A and 30% investment portion in B.

b) Calculate the expected risk of each security separately and of the portfolio as defined in part a) above. Assume that the correlation coefficient of the two returns is 0.25.