The return expectations of Security A, Security B and the market portfolio are as indicated in the following table: a) Estimate the correlation between the return on Security A and return on Security B. (10 marks) b) Suppose you are going to invest RM 100,000 in Security A and RM 150,000 in Security B. Calculate the expected return and standard deviation of this portfolio. (5 marks) c) The betas of Security A and Security B are found to be 1.10 and 0.20 , respectively. If the Treasury bill rate is 3.0%, determine whether the portfolio above is undervalued or overvalued. Plot the portfolio on the risk (beta) and return diagram. (10 marks) (Total: 25 marks)