Question 5(10 marks) Suppose that securities are priced as if they are traded in a two-parameter economy. You have forecast the correlation coefficient between the rate of return on Knowledge Mutual Fund and the market portfolio at 0.8. Your forecast of the standard deviation of the rates of return are 0.25 for Knowledge, and 0.20 for the market portfolio. How would you combine the Knowledge Fund and a riskless security to obtain a portfolio with a beta of 1.6? s