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Francisco constructs a portfolio with two securities: Security Security Weight Security SD (%) Beta (%) CSL Limited (CSL:AX) 35.0 9 0.18 Macquarie Group Limited (MQG:AX) 65.0 17 1.14 The correlation of returns between the two securities is -0.1516. Francisco estimates the expected market return as 13.0% p.a. and a risk-free rate of 4.0%. a) What is the portfolio's beta? (Please answer to 3 decimal places) b) What is the portfolio's expected return? (Please answer to 3 decimal places) c) What is the portfolio's expected standard deviation?

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Francisco constructs a portfolio with two securities: Security Weight Security Security SD (%) Beta (%) CSL Limited (CSL:AX) 35.0 9 0.18 Macquarie Group Limited 65.0 17 1.14 (MQG:AX) The correlation of returns between the two securities is -0.1516. Francisco estimates the expected market return as 13.0% p.a. and a risk-free rate of 4.0%. a) What is the portfolio's beta? (Please answer to 3 decimal places) b) What is the portfolio's expected return? % (Please answer to 3 decimal places) c) What is the portfolio's expected standard deviation? % Francisco constructs a portfolio with two securities: Security Weight Security Security SD (%) Beta (%) CSL Limited (CSL:AX) 35.0 9 0.18 Macquarie Group Limited 65.0 17 1.14 (MQG:AX) The correlation of returns between the two securities is -0.1516. Francisco estimates the expected market return as 13.0% p.a. and a risk-free rate of 4.0%. a) What is the portfolio's beta? (Please answer to 3 decimal places) b) What is the portfolio's expected return? % (Please answer to 3 decimal places) c) What is the portfolio's expected standard deviation? %