You are considering investing in two securities, X and Y, and have the following information: Security Possible return (%) Probability X 30 0.3 25 0.4 20 0.3 Y 50 0.2 30 0.6 10 0.2 (a) Calculate the...

You are considering investing in two securities, X and Y, and have the following information:

(a) Calculate the expected return for each security separately and for a portfolio of 60 per cent X and 40 per cent Y.

(b) Calculate the expected risk of each security separately and of the portfolio as defined above if the correlation coefficient of the two returns is + 0.15.