write my assignment 9958

(i) Calculate the expected return and standard deviation for each security.

(ii) Calculate the weighted average standard deviation.

(iii) Calculate the expected return and standard deviation for the portfolio of securities.

(iv) Calculate the correlation coefficient and explain what this particular coefficient indicates.

(v) Based on the results of your calculations show how the portfolio of securities is able to reduce risk.

(vi) Whatis the name of the risk that can be reduced?

A client has requested your assistance in evaluating risk and return in a portfolio Ofinvestments . The proposal is to have a 70% investment in Melbourne Limited and a 30investment in Perth Limited . Probability distributions of these securities would be afollows :Melbourne LedPerth Led& Returns& ReturnsSecurity Probability281233%182041%102526%Required : Identify and measure the magnitude and volatility of organizational risks +determine the extent of risk exposure of the given Portfolio :"