Q.No.2: Assume you are a portfolio manager at AKD investments Ltd. Recently you came across three attractive stocks and want to create a portfolio investment in these three stocks. The details of the stocks are given below:

Company name	Volatility (Standard deviation)	Weight in Portfolio	Correlation with the market portfolio
Meezan Bank Ltd	12%	0.40	0.70
Lucky Cement Ltd	20%	0.35	0.55
KE Ltd	15%	0.25	0.45

The expected return on the market portfolio is 8% and its volatility (SD) is 10%. The risk-free rate based on central banks discount rate is 3%. (2 marks each)

a. Calculate each of the stocks expected return and risk (beta) as compared to the market.

b. What should be the expected return of the portfolio based on values calculated in part a. c. Calculate the beta of the portfolio? what does it tells regarding the riskiness of the portfolio?

d. Using the values from part c, can you calculate the expected return of the portfolio? Is it similar to your answer in part b? Why or why not?

please answer this as soon as possible all parts urgent