QUESTION 1 [50 MARKS] The portfolio consists of two securities, namely Netflix and Alphabet C. NETFLIX ALPHABETC Expected Return 75% 35% Risk 20% 10% Proportion Invested X 42% The Correlation coefficient between Netflix and Alphabet C is 0.65. REQUIRED (a) Determine the proportion of investment in Netflix and the expected return of the portfolio. (5 marks] (b) Calculate the Standard Deviation of the portfolio. [6 marks] (c) Describe the investment decision process that an investor needs to consider before making any investment. [10 marks] (d) 'Portfolio diversification is said to eliminate risks'. Discuss with reference to systematic and unsystematic risks. [9 marks] (e) Discuss whether the assumptions of the Capital Asset Pricing Model (CAPM) hold in reality Justify your answer. [10 marks] (f) Discuss the importance of investment philosophy and explain 3 investment philosophies that investors tend to adopt. [10 marks]