You have 1,000,000 and decide to invest in the shares of SuperRisk plc and ReallySafe plc. The information of these companies' shares is given as foollows. volatility Correlation coefficient Expected return SuperRisk plc 25% p.a. ReallySafe plc 15% p.a. 0.4 30% p.a. 25% p.a. a) If you invest 35% of your wealth in the shares of SuperRisk plc and the rest in those of ReallySafe plc, then what is the expected return of your portfolio? What is volatility of your portfolio? (30 marks) b) Compare the volatility risk of the portfolio in part a) with those of the individual stocks given in the table and explain why the risk has behaved in the way it has? (100 words limit) (10 marks) c) Now you borrow 500,000 of risk-free funds at 5% p.a. and invest all of this in the shares of ReallySafe plc. This is in addition to the earlier investments you made. Your portfolio will now consist of the investments in stocks and your borrowing. What is the expected return of this portfolio? What is volatility of this portfolio? (50 marks) Contrast the volality of the portfolio in part c) with that in part a) and explain why risk has changed or not changed when forming the portfolio in part c). (100 words limit) (10 marks) I (Total 100 Marks)