You are given the scenarios below:

Scenario	Probability	Return on Agric Notes	Return on ordinary shares
1. Bumper harvest	0.2	25,000	9,000
2. Normal harvest	0.35	20,000	11,000
3. Low Harvest	0.3	18,000	22,000
4. Drought	0.15	10,000	28,000

Required:

a) Determine the annual expected return for each scenario for this portfolio (4)

b) If the target of the company is to get at least $15,500 per annum from funds invested, does this portfolio present such prospects overally? Support your answer with workings (8)

(c) Compute the risk of each investment in the portfolio if it were to stand alone and which one has greater risk? Use the standard deviation (8)

(d) Determine the portfolio risk as measured by standard deviation and comment on whether diversification is possible or not, by combining these investments (6)

(e) If the objective of the portfolio manager is not to have expected returns fluctuating by more than $1,500 per annum, can it be concluded that this portfolio is ideal for the company and why? (4)