9. Suppose there are only two stocks in the world: stock A and stock B. the expected returns of these two stocks are 10 percent and 20 percent, while the standard deviations of the stocks are 5 percent and 15 percent, respectively. The correlation coefficient of the two stocks is zero. a. Calculate the expected return and standard deviation of a portfolio that is composed of 30 percent A and 70 percent B. b. Calculate the expected return and standard deviation of a portfolio that is composed of 90 percent A and 10 percent B. c. Suppose you are risk averse. Would you hold 100 percent stock A? how about 100 percent stock B? 10. Explain these (a) Bank of Ghana bills (b) Commercial paper (c) interbank loans (ii) A financial institution is short of cash to meet Bank of Ghana reserve requirement over a short period. This financial institution is therefore selling treasury bills of face value of GHS10 million to a discount house at a price of GHS9.82 million. The institution agrees to repurchase the T. Bills back at GHS10 million in 15 days. Calculate the repurchase (REPO) rate p.a. on the transaction. (iii) Investors are bidding for 91-day T-bill at the BOG auction market for GHS 96.00 for a maturity value of GHS100.00. Calculate the interest rate per annum on this T-bill 11. (1) Describe the investment policies of the following mutual funds - (a) Bond Funds. (b) Index Funds (ii) XYZ is an open-end fund set up to charge a load. Assume its net asset value is GHS5.68 and its offer price is GHS6.85 a. Compute the cedi value of the load b. What percentage of the offer price does the load represent? c. What percentage of the net asset value does the load represent