Question 3: Marcus is considering investing in two securities, CSL and IAG, and has hired you to assist him in evaluating the risk/reward characteristics of these two securities. The following information has been supplied to you on these two securities and the market portfolio: CSL 0.08 0.05 Expected return Standard deviation Beta Correlation with Market Portfolio IAG Market Portfolio 0.17 0.15 0.09 0.08 1.20 ? ? 1.00 0.70 Required: a) What is the Beta of security CSL? [2 marks] Please provide your answer inside this textbox: b) If Marcus, who doesn't own any securities at the moment, was to invest in only one of the two available securities, which one would you recommend? [3 marks] Please provide your answer inside this textbox c) If Marcus decided to invest $30,000 into a combination of security IAG and the risk-free asset, and the resulting two asset portfolio had a Beta of 0.48, how much of the original $30,000 did Marcus invest into security IAG? [2 marks] Please provide your answer inside this textbox d) If the risk-free rate is 2%, are any of these two securities considered overvalued or undervalued? [3 marks] Please provide your answer inside this textbox