Question

Consider the following investments \begin{tabular}{|c|c|c|} \hline Investment & Expected returns(r) & Standard Deviation \\ \hline A & $ 5 \% $ & $ 10 \% $ \\ \hline B & $ 7 \% $ & $ 11 \% $ \\ \hline C & $ 6 \% $ & $ 12 \% $ \\ \hline D & $ 6 \% $ & $ 10 \% $ \\ \hline \end{tabular} (3 marks) Q 2. Refer to details in Qs11.Analyze from the given investments and decide which you will choose from B and C (3 marks) Q 3. Refer to details given in $ Q $ 1. Analyze from the given the investments and decide which you will choose from $ C $ and $ D $ (3 marks) Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta \begin{tabular}{|l|l|l|l|} \hline Security & Amount received $ (\mathrm{p}) $ & Beta(B) & Expected return(r) \\ \hline A & $ \$ 1.5 $ Million & $ 1.0 $ & $ 12 \% $ \\ \hline B & $ \$ 1.0 $ Million & $ 1.5 $ & $ 13.5 \% $ \\ \hline C & $ \$ 2 $ Million & $ 0.8 $ & $ 9 \% $ \\ \hline \end{tabular} Q 4. Estimate the portfolio beta? (3 marks) Q 5. Refer to the problem given in q13. Estimate the portfolio's expected return? (3 marks) (Marking Scheme;; 1 mark for correct answer and 2 marks for calculation=3 marks)

          Consider the following investments
\begin{tabular}{|c|c|c|}
\hline Investment & Expected returns(r) & Standard Deviation \\
\hline A & \( 5 \% \) & \( 10 \% \) \\
\hline B & \( 7 \% \) & \( 11 \% \) \\
\hline C & \( 6 \% \) & \( 12 \% \) \\
\hline D & \( 6 \% \) & \( 10 \% \) \\
\hline
\end{tabular}
(3 marks)
Q 2. Refer to details in Qs11.Analyze from the given investments and decide which you will choose from B and C (3 marks)
Q 3. Refer to details given in \( Q \) 1. Analyze from the given the investments and decide which you will choose from \( C \) and \( D \) (3 marks)
Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta
\begin{tabular}{|l|l|l|l|}
\hline Security & Amount received \( (\mathrm{p}) \) & Beta(B) & Expected return(r) \\
\hline A & \( \$ 1.5 \) Million & \( 1.0 \) & \( 12 \% \) \\
\hline B & \( \$ 1.0 \) Million & \( 1.5 \) & \( 13.5 \% \) \\
\hline C & \( \$ 2 \) Million & \( 0.8 \) & \( 9 \% \) \\
\hline
\end{tabular}
Q 4. Estimate the portfolio beta? (3 marks)
Q 5. Refer to the problem given in q13. Estimate the portfolio's expected return? (3 marks)
(Marking Scheme;; 1 mark for correct answer and 2 marks for calculation=3 marks)

Consider the following investments

Investment Expected returns(r) Standard Deviation

A 5 % 10 %

B 7 % 11 %

C 6 % 12 %

D 6 % 10 %

(3 marks)
Q 2. Refer to details in Qs11.Analyze from the given investments and decide which you will choose from B and C (3 marks)
Q 3. Refer to details given in Q 1. Analyze from the given the investments and decide which you will choose from C and D (3 marks)
Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta

Security Amount received (p) Beta(B) Expected return(r)

A $ 1.5 Million 1.0 12 %

B $ 1.0 Million 1.5 13.5 %

C $ 2 Million 0.8 9 %

Q 4. Estimate the portfolio beta? (3 marks)
Q 5. Refer to the problem given in q13. Estimate the portfolio's expected return? (3 marks)
(Marking Scheme;; 1 mark for correct answer and 2 marks for calculation=3 marks)

Added by Zaryab J.

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