3. Consider Table 5. Each part of question 3 carry equal marks. Variance Security i Market Systematic Unsystematic Beta Risk Risk Table 5 Correlation Average Alpha of i and Returns Market 0.80 2% 0.60 1% 0.20 1% 1.00 9% 1 2 3 Market 12% 14% 16% 18% 1.00 (d) Consider Table 5. Form a portfolio of securities 1 and 2. Invest 75% in security 1 and 25% in security 2. What is the expected return and standard deviation risk of this portfolio? Sketch the minimum variance frontier comprised of security 1 and security 2. Detail all calculations that you use. 3. Consider Table 5. Each part of question 3 carry equal marks. Variance Security i Market Systematic Unsystematic Beta Risk Risk Table 5 Correlation Average Alpha of i and Returns Market 0.80 2% 0.60 1% 0.20 1% 1.00 9% 1 2 3 Market 12% 14% 16% 18% 1.00 (d) Consider Table 5. Form a portfolio of securities 1 and 2. Invest 75% in security 1 and 25% in security 2. What is the expected return and standard deviation risk of this portfolio? Sketch the minimum variance frontier comprised of security 1 and security 2. Detail all calculations that you use