1. You would like to invest in a portfolio of the following two securities: Security A whose expected return is 25% per

[answerhappygod]

1. You would like to invest in a portfolio of the following
two securities: Security A whose expected return is 25% per year
and standard deviation is 26% per year and Security B whose
expected return is 10% per year and standard deviation is 15% per
year
a. What is the expected return on a portfolio that invested
40% in Security A and 60% in Security B?
b. If the correlation between the return on Security A and
Security B is negative 0.50, what would be the standard deviation
for the portfolio invested 40% in Security A and 60% in Security
B?
c. Given your answer in part b would you reduce your risk
by investing in this portfolio rather than investing all your money
in security B? Answer Yes or No and explain.
Note. Need explanation on letter c only