The following data are available to you as a financial analyst: Security Expected Return Beta Standa

The following data are available to you as a financial analyst:

Security Expected Return Beta Standard Deviation

A 0.32 1.70 0.50

B 0.30 1.40   0.35

C 0.25   1.10 0.40

D 0.22 0.95 0.24

E 0.20 1.05 0.28

F 0.14 0.70 0.18

Market 0.12 1.00 0.20

Treasury Bills 0.08 0 0

Required: a) Assuming that a portfolio is constructed using equal portions of the A, B and C stocks listed above: i) What is the expected return on and risk of such a portfolio?[4]

b) Now suppose a portfolio is constructed with D and E stocks calculate the risk of a minimum variance portfolio. [4]