Consider the following table of information: Share Beta Share Price 20 50 No. of shares outstanding 3 000 000 4 000 000 Expected Return 109 159 Correlation of returns 0.73 ABC DEF 0.8 1.3 Sam would like to invest $10,000 in a portfolio of ABC and DEF shares that has an expected return of 12%. (a) How many shares of ABC and DEF should Sam purchase? (b) Find the beta of Sam's portfolio to two decimal points of accuracy, (c) Which do you expect to be greater, the standard deviation of returns of ABC or the standard deviation of returns of DEF? Explain why. (d) Lucy purchases 50 shares of ABC and 20 shares of DEF. She estimates that the variance of returns of ABC is 2.25% and the variance of returns of DEF is 4.00%. Using these estimates and the information in the above table, find the standard deviation of returns of Lucy's portfolio