3. (a) What are the main principles of (Markowitz) portfolio theory? How does the risk-free lending and borrowing extend the range of investment possibilities (in relation to the efficient portfolio on the efficient frontier)? (b) Details of the shares held in a portfolio are given below: Securities Beta Expected Return Percentage held Share A 1.1 14% 26% Share B 0.8 10% 18% Share C 1.7 18% 31% Treasury Bill 0 2% 25% Calculate the expected return and beta of this portfolio. How does the risk of this portfolio compare with that of the market portfolio? 3. (a) What are the main principles of (Markowitz) portfolio theory? How does the risk-free lending and borrowing extend the range of investment possibilities (in relation to the efficient portfolio on the efficient frontier)? (b) Details of the shares held in a portfolio are given below: Securities Beta Expected Return Percentage held Share A 1.1 14% 26% Share B 0.8 10% 18% Share C 1.7 18% 31% Treasury Bill 0 2% 25% Calculate the expected return and beta of this portfolio. How does the risk of this portfolio compare with that of the market portfolio