Here are some historical data on the risk characteristics of Ford and Harley Davidson.

FordHarley Davidson (beta)1.260.67Yearly standard deviation of return (%)30.615.8

Assume the standard deviation of the return on the market was 13.0%.

1. a.The correlation coefficient of Ford's return versus Harley Davidson is 0.39. What is the standard deviation of a portfolio invested half in each share?
2. b.What is the standard deviation of a portfolio invested one-third in Ford, one-third in Harley Davidson, and one-third in risk-free Treasury bills?
3. c.What is the standard deviation if the portfolio is split evenly between Ford and Harley Davidson and is financed at 50% margin, that is, the investor puts up only 50% of the total amount and borrows the balance from the broker?
4. d-1.What is theapproximatestandard deviation of a portfolio composed of 100 stocks with betas of 1.26 like Ford?
5. d-2.What is theapproximatestandard deviation of a portfolio composed of 100 stocks with betas of 0.67 like Harley Davidson?(For all requirements, use decimals, not percent, in your calculations. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)