1. Assume that the XYZ has an expected return of 5% and a standard deviation of 25%. ABC has an expected return of 9% and a standard deviation of 14%. Assume that that the correlation coefficient between XYZ and ABC IS .6. Further assume that you plan to invest $150.000 of your wealth in XYZ and $250,000 in ABC. Determine the expected return and the standard deviation of the portfolio, respectively: (15 points) 2. Assume that the correlation coefficient of ABC with XYZ of problem 1 is actually --1. How much you invest in each Security to obtain the riskless hedge? You are determining the actual dollar amount invested in each security. (15. points) nal 3. Assume that the correlation coefficient of ABC with XYZ of problem 1 is actually - 1. Determine the expected return and standard deviation of the portfolio it you invest $200,000 of your wealth in XYZ and $200.000 in ABC. (15 points ince 4. Assume that you plan to borrow $50,000 at 2% lie shorted $50,000 of T-Bills) to invest in XYZ of problem 1. Further assume that you also plan to invest $250,000 of your own money in XYZ. What is the expected return and standard deviation of that portfolio? (15 points)