Questions 8 to 10 rely on the following information You are an investor keen to invest in the shares of Asjeet Ltd and Pinder Ltd. Your plan is to construct a portfolio consisting of a 30% investment in Asjeet Ltd shares and 70% in Pinder Ltd shares. 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 index as a proxy for the market portfolio. a Asset Correlation coefficient (P1,2) Standard deviation of returns (p.a.) ASX 200 Asjeet Ltd shares Pinder Ltd shares 10-year Government bond 1.0 Asjeet Ltd shares Pinder Ltd shares ASX 200 index 10-year Government bond 20% 30% 25% 0 0.6 0.8 0 1.0 0.7 0 1.0 0 1.0 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 Asjeet Ltd and Pinder Ltd shares (to two decimal places)? [4 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%)? [7 marks]