Questions 8 to 10 rely on the following information You are an investor with a keen interest in the shares of Handley Ltd and Pinder Ltd. You believe that Handley Ltd is undervalued and Pinder Ltd is overvalued. You have $18,000 of your own money that you plan to invest in Handley Ltd. You also plan on short selling $7,200 of Pinder Ltd shares and investing these additional funds in Handley Ltd shares as well. You estimate that the current yield on a 10 -year Government bond is 3% p.a. and plan to use this security as a proxy for the risk-free asset. You also estimate that the market risk premium is 6% p.a. You go on to compile the following information with a view to treating the ASX 200 as a proxy for the market portfolio. 8. What is the standard deviation of returns for your portfolio (as a percentage to two decimal places - e.g. 10.03\%)? [4 marks 9. What is the beta of your portfolio (expressed to two decimal places e.g. 0.65)? [6 marks] 10. According to the CAPM, what is the expected return for your portfolio (as a percentage to two decimal places - e.g. 10.03%) ? [2 marks] Questions 8 to 10 rely on the following information You are an investor with a keen interest in the shares of Handley Ltd and Pinder Ltd. You believe that Handley Ltd is undervalued and Pinder Ltd is overvalued. You have $18,000 of your own money that you plan to invest in Handley Ltd. You also plan on short selling $7,200 of Pinder Ltd shares and investing these additional funds in Handley Ltd shares as well. You estimate that the current yield on a 10 -year Government bond is 3% p.a. and plan to use this security as a proxy for the risk-free asset. You also estimate that the market risk premium is 6% p.a. You go on to compile the following information with a view to treating the ASX 200 as a proxy for the market portfolio. 8. What is the standard deviation of returns for your portfolio (as a percentage to two decimal places - e.g. 10.03\%)? [4 marks 9. What is the beta of your portfolio (expressed to two decimal places e.g. 0.65)? [6 marks] 10. According to the CAPM, what is the expected return for your portfolio (as a percentage to two decimal places - e.g. 10.03%) ? [2 marks]