An investor has a portfolio of two securities, stock XYZ and an exchange traded fund (ETF)...

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An investor has a portfolio of two securities, stock XYZ and an exchange traded fund (ETF) that tracks the ASX200 and charges negligible fees. Assume that the ASX200 ETF is the market portfolio. Details about risk free government bonds are also provided, though the investor holds none. The following table summarises the investors' holdings. Note that they have zero treasury bonds. Assume that returns are effective annual rates (also called net discrete returns). Portfolio Details Investment Expected return Total standard deviation Betal Correlation between XYZ and ASX200 XYZ $70,000 11% pa 60% pa 1.5 ASX200 ETF Government bond $130,000 $0 0.75 8% pa 30% pa 2% pa 0% pa Do not enter your answers as percentages. Provide all answers as decimals correct to at least 6 decimal places. So for example if your answer is 1.23456789%, write 0.0123456789. Question 2a (2 marks): What is the portfolio's total expected return pa? Give your answer as a decimal that's correct to 6 decimal places or more. So for example if your answer is 1.23456789%, you can write 0.0123456789. Answers: Question 2b (2 marks): What is the portfolio's total variance of returns pa? Give your answer as a decimal that's correct to 6 decimal places or more. So for example if your answer is 1.23456789%, you can write 0.0123456789. portfolio variance: Answers: An investor has a portfolio of two securities, stock XYZ and an exchange traded fund (ETF) that tracks the ASX200 and charges negligible fees. Assume that the ASX200 ETF is the market portfolio. Details about risk free government bonds are also provided, though the investor holds none. The following table summarises the investors' holdings. Note that they have zero treasury bonds. Assume that returns are effective annual rates (also called net discrete returns). Portfolio Details Investment Expected return Total standard deviation Betal Correlation between XYZ and ASX200 XYZ $70,000 11% pa 60% pa 1.5 ASX200 ETF Government bond $130,000 $0 0.75 8% pa 30% pa 2% pa 0% pa Do not enter your answers as percentages. Provide all answers as decimals correct to at least 6 decimal places. So for example if your answer is 1.23456789%, write 0.0123456789. Question 2a (2 marks): What is the portfolio's total expected return pa? Give your answer as a decimal that's correct to 6 decimal places or more. So for example if your answer is 1.23456789%, you can write 0.0123456789. Answers: Question 2b (2 marks): What is the portfolio's total variance of returns pa? Give your answer as a decimal that's correct to 6 decimal places or more. So for example if your answer is 1.23456789%, you can write 0.0123456789. portfolio variance: Answers: