(a) Suppose there are 2 assets A1 and Plan B. A1 has an expected return of 7.6% and a standard deviation of 20%. Plan B has an expected return of 12.4% and a standard deviation of 28%. Al is expected to trade at 180 in two years' time. What should its current market price be? (10 marks) The correlation between A1 and Plan B is 0. Suppose portfolio ANB has a weight of 50% in A1 and 50% in Plan B. What is the expected return and standard deviation of ANB? (b) (10 marks) (c) Now suppose a portfolio manager has a maximum standard deviation of 20%. Estimate the two sets of weights in A1 and Plan B which can generate this. What is the maximum expected return they could generate when forming portfolios from A1 and Plan B for a standard deviation of 20%. (15 marks) (d) Discuss the main advantages of using standard deviation to measure risk. (15 marks)