Middleton Investment Fund has the following portfolio which comprises 55% of Share A and 45% of Bond B with the data provided in the table below:

	Share A	Bond B
Expected return	25%	12%
Standard Deviation of return	18%	3%
Correlation of coefficient (p)	0.5

Required:

1. Assume that the portfolio has returns of 9.5%, -7.3%, 12.6%, 14.8% and 17.2% over the past five (5) years, respectively. Calculate the geometric average return of the portfolio for this period (1.5 marks)
2. Given the data provided in the table above, compute the expected return of the portfolio (1.5 marks)

3. Determine the risk of the portfolio by calculating standard deviation

4. Calculate the beta of this portfolio and compare systematic risk of the portfolio to the overall market, if the return on government bonds is 5.5% p.a. (per annum) and the market risk premium is 7% (2 marks)