You have been provided the following information regarding the recent annual returns to the common stocks of four companies: ON Semiconductor (ON), Old Dominion Freight Lines (ODFL), BroadCom (AVGO), and Microsoft (MSFT). You also have been provided similar information regarding the market portfolio. ODFL AVGO MSET Market 50.00% 38.00% 35.00% 21.00% 27.00% 20.00% ON Mean Std. Dev. 65.00% 42.00% 22.00% 12.00% ON ON ODFL AVGO MSFT GSPC 1.000 0.400 0.700 0.400 0.600 Correlations ODFL AVGO 0.400 0.700 1.000 0.400 0.400 1.000 0.300 0.600 0.600 0.700 MSFT 0.400 0.300 0.600 1.000 0.700 Market 0.600 0.600 0.700 0.700 1.000 Required (you may submit a pdf): A. (2 points) What are the expected return and variance of return to a portfolio equally invested in Old Dominion Freight Lines and Microsoft? You may simply set up the formulas with the appropropriate numbers. You need not compute the results. B. (1 point) What is BroadCom's beta? C. (2 points) Are you surprised that the market portfolio has the lowest standard deviation of return? Why, or why not? You have been provided the following information regarding the recent annual returns to the common stocks of four companies: ON Semiconductor (ON), Old Dominion Freight Lines (ODFL), BroadCom (AVGO), and Microsoft (MSFT). You also have been provided similar information regarding the market portfolio. ODFL AVGO MSET Market 50.00% 38.00% 35.00% 21.00% 27.00% 20.00% ON Mean Std. Dev. 65.00% 42.00% 22.00% 12.00% ON ON ODFL AVGO MSFT GSPC 1.000 0.400 0.700 0.400 0.600 Correlations ODFL AVGO 0.400 0.700 1.000 0.400 0.400 1.000 0.300 0.600 0.600 0.700 MSFT 0.400 0.300 0.600 1.000 0.700 Market 0.600 0.600 0.700 0.700 1.000 Required (you may submit a pdf): A. (2 points) What are the expected return and variance of return to a portfolio equally invested in Old Dominion Freight Lines and Microsoft? You may simply set up the formulas with the appropropriate numbers. You need not compute the results. B. (1 point) What is BroadCom's beta? C. (2 points) Are you surprised that the market portfolio has the lowest standard deviation of return? Why, or why not