You have just collected your lump sum from the sale of your building which amounts to GHC100,000.00 in Government of Ghana Treasury Bills (T-bills), GHC60,000.00 in Stocks and the remaining amount in...

You have just collected your lump sum from the sale of your building which amounts to GHC100,000.00 in Government of Ghana Treasury Bills (T-bills), GHC60,000.00 in Stocks and the remaining amount in Government of Ghana Bonds Available (3) %. Stocks provide expected return of eight (8) % and a standard deviation of 20%, while Bonds provide an expected return of eight (8) % and a standard deviation 10%. Correlation coefficients between these investment vehicles are as follows: Between Stock and Bond = 0.25, Between Stock and T-bills= -0.08, Between Bond and T-bills = 0.15

Required:

1.Expected return on the portfolio.

2. Risk and coefficient of variation on the portfolio.