Question 21 The last seven years' percentage returns for two investment funds are shown in the table below. The first fund specialises in investing in corporate bonds or fixed interest securities while the second fund buys shares in high growth companies. Interest Growth (%) 17 8 2010 2011 2012 2013 2014 2015 2016 Fixed (%) 1-5 -5 11 9 6 12 10 6 12. a) What is the expected return for the Fixed Interest Fund? b) What is the standard deviation for the Growth Fund? c) If you decide to create a portfolio of the two funds by investing 60% of your money in the fixed interest fund and 40% in the growth fund. The standard deviation for the fixed interest fund is 5.77%. If the correlation between the two funds is 0.49 what is the standard deviation of your portfolio? Question 22 Allfresh Limited manufactures consumer products for a mature product market. As such, its growth rate is fairly minimal and expected to be only 2.0% per annum. The company has just paid a dividend of $0.57 per share. The company has a beta of 0.9, while the current risk free rate is 2.5% and the expected market risk premium is 7%. What is the share price for Allfresh Limited