Q.3 Suppose that over a recent five year investment period you observed that the average annual return on the market portfolio and the risk free security were 22.96% and 5.28% respectively. i. what would be the expected returns of the portfolio if it has a beta of 0.815. ii. If this portfolio actually yield 19.67 % return, calculate the returns for selectivity. iii. Assume that the standard deviation on the market and the manager's portfolio are 14.95% and 13.41% respectively, What is the manager's level of diversification. Has he diversified all of the unsystematic risk? iv. Show all the figures calculated in part i, ii, and iii graphically.