Question 2 (total of 12 marks): The following table shows details of a portfolio made up of stock ABC and a managed fund DEF. The managed fund charges minimal fees and closely tracks the performance of the S&P500, so can be treated as the market portfolio. This managed fund is labelled S&P500 DEF in the below table. Returns are expressed as effective annual rates. Portfolio Details ABC S&P500 DEF Investment $25,000 $75,000 Expected return 0.22 0.12 Total standard deviation 0.93 0.32 Beta 2.67375 Correlation between ABC and S&P500 0.92 1 Provide answers as decimals rounded to 6 decimal places. For example, if your answer is 0.23456789, write it as 0.234568. Question 2a (2 marks): What is the portfolio's total expected return pa? Answer: Question 2b (2 marks): What is the portfolio's total variance of returns pa? Answer: Question 2c (2 marks): What is the beta of the portfolio? Answer: Question 2d (2 marks): What is the portfolio's systematic variance of returns pa? Answer: Question 2e (2 marks): if the government bond yield is 2% pa, what's the CAPM return of stock ABC