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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

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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% pa, 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 Asset Standard Correlation coefficient (P1,2) deviation of returns (p.a.) Asjeet Ltd Pinder Ltd ASX 200 10-year shares shares Government bond Asjeet Ltd shares 20% LO Pinder Ltd shares 30% 0.6 1.0 ASX 200 index 25% 0.8 0.7 1.0 10-year 0 0 1.0 Government bond 0 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 10.03942

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