3 of 6 ID: FMTH.RR.ERVS.03A Michael and Janine are both investors wanting to purchase investment portfolios. The expected return, standard deviation and beta of various investments are shown in the following table: Average Standard Investment Beta return over last year (% pa) | Deviation (% pa) Apocryphal Industries 15 11 1.4 Bona Fide Ltd 14 11 1.3 Market Index 12 2 10 year Bond 5 3 1 0 Michael wants a portfolio that has an expected return of 8% pa and that contains only Apocryphal Industries and 10 year bonds. Janine wants a portfolio with a 40% weighting in Apocryphal Industries and a 60% weighting in Bona Fide Ltd shares. The correlation coefficient between the returns of the shares in Apocryphal Industries and Bona Fide Ltd is -0.5. a) Calculate the percentage of each share that Michael should include in his portfolio to achieve his desired results. Give your answers as a percentage to the nearest percent.