Answer Happy

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.
What is the expected return on a portfolio that invested 40% in
Security A and 60% in Security B? (5 pts)
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? (5
pts)
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. (4 pts)