Suppose your estimates of the possible one year returns frominvesting in the ordinary shares of Nestle Pakistan Ltd Ltd were asfollows:

probability of occurrence	0.1	0.2	0.4	0.2	0.1
possible returns	-15%	5%	20%	35%	50%

The following information is also available about the portfolioinvestment

	value	expected return	standard deviation	beta
share nestle ltd	50	?	?	0.7
share colgate ltd	50	20%	0.13	0.6

Required:

a) Calculate expected return and standard deviation for NestlePakistan Ltd.?

b)Calculate portfolio return and standard deviation for theabove portfolio if the covariance between the two shares is0.04.

c) Calculate the portfolio beta. What does it show?