The following table shows details of a portfolio made up of stock ABC and a managed fund DEF. The managed fund charges minimal fees and closely tracks the performance of the S&P500, so can be treated as the market portfolio. This managed fund is labelled S&P500 DEF in the below table. Returns are expressed as effective annual rates.

Portfolio Details
	ABC	S&P500 DEF
Investment dollars	$40,000	$60,000
Expected return	0.06	0.08
Total standard deviation	0.11	0.16
Beta	?	1
Correlation of returns between ABC and S&P500	0.36

Provide answers as decimals rounded to 6 decimal places. For example, if your answer is 0.23456789, write it as 0.234568.

Question 2a (2 marks): What is the portfolio's total expected return pa?

Question 2b (2 marks): What is the portfolio's total variance of returns pa?

Question 2c (2 marks): What is the beta of stock ABC?

Question 2d (2 marks): What is the beta of the portfolio?

Question 2e (2 marks): What is the portfolio's systematic variance of returns pa?

Question 2f (2 marks): Assuming that stock ABC and the S&P500 DEF are fairly priced, calculate the risk free rate.