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The following is the information for securities of ABC plc and XYZ plc: The correlation coefficient between the returns of the two securities is 0.70 and standard deviation of the market return is 20%. Required: (a) As a new graduate accountant, CPA(T), determine if it is better to invest in securities of ABC plc or XYZ plc (b) If the proportional of investment in ABC plc is 40% and that in XYZ plc is 60% determine the expected rate of return and portfolio standard deviation (c) Determine the risk free rate The following is the information for securities of ABC plc and XYZ plc: The correlation coefficient between the returns of the two securities is 0.70 and standard deviation of the market return is 20%. Required: (a) As a new graduate accountant, CPA(T), determine if it is better to invest in securities of ABC plc or XYZ plc (b) If the proportional of investment in ABC plc is 40% and that in XYZ plc is 60% determine the expected rate of return and portfolio standard deviation (c) Determine the risk free rate