You are working for a local financial investment company. Your manager asks you to research some shares and provide information to your clients. Assume you have collected the following information for two shares, AD and HK: Share Standard Mean return Correlation deviation with HK AD 0.20 0.15 - 0.10 HK 0.25 0.12 1.00 The risk-free rate is 5.00% per year. Required: 1. Help your client construct the two-asset Portfolio M, formed by investing 60% in Share AD and 40% in Share HK, and calculate the mean return and the standard deviation of returns for this portfolio. (6 marks) 2. Now consider another portfolio, N, composed of HK and the risk-free asset. a. Calculate the weight for the risk-free asset if the standard deviation of N must be 12.5% (5 marks) b. Calculate the expected return of N. (4 marks)