U XYZ Ltd has an expected return of 22 per cent and standard deviation of 40 per cent. L Ltd has an expected return of 24 per cent and standard deviation of 38 percent. In addition, XYZ has a beta of 1.24. The correlation coefficient between XYZ and L Ltd is 0.72. Further, the standard deviation of the market return is 20 percent. Required 6 Is investing in XYX better than investing in L. Ltd? [2 marks] i) If you invest 40 percent in L Ltd and 60% in XYZ Ltd, what is your expected rate of return and the portfolio standard deviation? [4 marks () What is the market portfolio's expected rate of return and how much is the risk free rate? [4 marks