Refer to the attachment.

Securities D. E and F have the following characteristics with respect to expected return, standard deviation and correlation coefficients. Security Expected Return Standard Deviation Correlation Coefficient D - E D - F E - 0102 0.4 0.15 0.16 0.12 OTOR 0.6 REQUIRED: Compute the expected rate of return and standard deviation of a portfolio comprised of equal investment in each security.XYZ Lid has 900,000 shares outstanding at current market price of Sh 130 per share. The company needs Sh 22,500,000 to finance its proposed expansion. The board of directors has decided to issue rights for raising the required funds. The subscription price has been fixed at Sh 75 per share. Required: How many rights are required to purchase one new share? What is the price of one share after the rights issue (Ex-right price)? Compute the theoretical value of each right Consider the effect of the rights issue on the shareholders' wealth under the three options available to the shareholders (Assume he owns 3 shares and has Sh 75 cash on hand).The following data are pertinent for companies A and B. A B Present Earnings Sha 20 million Shs 4 million No of shares 10 million 1 million Price/earning ratio 18 10 If the two companies were to merge and the exchange ratio were one share of Company A for each share of Company B. what would be the initial impact on earnings per share of the two companies? what is the market value exchange ratio? Is the merger likely to take place? b. If the exchange ratio were two shares of Company A for each share of Company B what would happen with respect to the above? If the exchange ratio were 1.5 shares of Company A for each share of Company B, what would happen? d What exchange ratio would you recommend