Question 4 a) Determine the expected return and the risk of a portfolio made up of 30 per cent of A and 70 per cent of B if the correlation coefficient for the returns on the two securities is +0.4, and the expected return and risks of the two securities are as follows Expected return Standard deviation A 16 per cent 20 per cent B 24 per cent 30 per cent (8 marks) b) Determine the expected return and risk of an equally weighted portfolio made up of 100 securities if the securities are chosen randomly, the typical security has an expected return of 14 per cent with standard deviation of 26 per cent, and all of the returns on the securities have zero correlation. (6 marks) c) Determine the outcome for the portfolio specified in (b) if the average correlation of returns is +0.20 rather than zero. (8 marks) d) Explain what is meant by the beta of a share and discuss its role as a measure of risk. Discuss why the industry beta of the US Telecom Services sector is 0.64 while that for Restaurant Dining is 1.21 (as of January 2021). (11 1/3 marks)