(a). The standard deviation of a company is 20% and that of the market is 10%. The correlation with the market is 60%. Calculate the company's: (i). Systematic risk (ii). Unsystematic risk, and (3marks). (3marks). (3marks). (iii). The Beta factor. (b). Given that the risk free rate of interest is 6%, and the market portfolio offers an expected return of 14% for a standard deviation of 24%: i. If Petros has as little as M1 000 to invest and desires an expected return of 20%. Show how he can achieve this by a combination of borrowing and investing in the market portfolio and calculate the standard the standard deviation of his final portfolio. (9 marks). ii. If Petros is very risk averse with the M1 000 he wants to invest and that he will tolerate a maximum standard deviation of 6%. Show how he can achieve this by a combination of lending at the risk free rate and investing in the market portfolio and calculate the return for his final investment. (8marks)