You are contemplating investing Tk.700 thousand in the common stocks of shonali Ansh (S) and Chiro Plastics (C) companies. You will invest Tk.228 thousand in Sonali Ansh and the remainder in Chiro Plastics. You have collected the following data for your analysis:

• Expected rate of return from Shonali Ansh (k_S): 8%
• Standard deviation of return from Ansh (sd_S): 4%
• Expected return from Chiro Plastics (k_C): 12%
• Standard deviation od return from Chiro Plastics (sd_C): 3
• Coefficient of correlation between the returns from the two stocks (r_SC): 0.53.

1. What is your expected rate of return from the portfolio that you have contemplated with the two stocks?
2. What is the standard deviation of the portfolio?
3. Which stock is more risky and why?