**The actual question is at the bottom in bold, the first two are needed in order to answer but the first two are already answered.**

Calculate the expected return on an asset that has the following probable

returns:

Order Return (%) Probability

1 6 3/4% .39

2 8.25% .27

3 9.5% .19

4 7% .09

5 4% .06

Answer: Expected Return: 6.4119

If you compare the asset in Exercise 1 to the following asset, can you quickly

tell which one is riskier?

Order Return (%) Probability

1 9% .29

2 10% .25

3 6.5% .22

4 5% .15

5 4% .09

returns:

Order Return (%) Probability

1 6 3/4% .39

2 8.25% .27

3 9.5% .19

4 7% .09

5 4% .06

Answer: Expected Return: 6.4119

If you compare the asset in Exercise 1 to the following asset, can you quickly

tell which one is riskier?

Order Return (%) Probability

1 9% .29

2 10% .25

3 6.5% .22

4 5% .15

5 4% .09

Answer: Expected Return: 1.4086

**ACTUAL Question:**

**If these two assets are in the same portfolio, would that be better or worse for the portfolio return? Can you tell by a quick examination, and how?**