QUESTION 1 Suppose Oloto is weighing the opportunity and the risk of investing in any of...
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QUESTION 1 Suppose Oloto is weighing the opportunity and the risk of investing in any of the two individual securities ADB House (X1) and NIB Hotels (X2) made of Real Estates Investment Trust with returns as: Years 1 23456 Probability 0.1 7 X1 0.15 0.2 0.15 0.1 0.2 0.1 3 a) Compute the expected return for each asset class. b) Find the portfolio return. 7 8 11 5 10 X2 g) Calculate the correlation and explain the results. h) Find the portfolio risk and explain your answer. LHSNBL wi 010 9 c) Calculate the expected risks for each security and explain your results. d) Calculate the coefficient of variation (CV) of the securities and explain 12 e) Find the Sharpe ration and explain given riskfree rate3.15%. f) Calculate the covariance for the securities. (3 Marks) (2 Marks) (4 Marks) your results. (2 Marks) (2 Marks) (2 Marks) (2 Marks) (5 Marks) Con QUESTION 1 Suppose Oloto is weighing the opportunity and the risk of investing in any of the two individual securities ADB House (X1) and NIB Hotels (X2) made of Real Estates Investment Trust with returns as: Years 1 23456 Probability 0.1 7 X1 0.15 0.2 0.15 0.1 0.2 0.1 3 a) Compute the expected return for each asset class. b) Find the portfolio return. 7 8 11 5 10 X2 g) Calculate the correlation and explain the results. h) Find the portfolio risk and explain your answer. LHSNBL wi 010 9 c) Calculate the expected risks for each security and explain your results. d) Calculate the coefficient of variation (CV) of the securities and explain 12 e) Find the Sharpe ration and explain given riskfree rate3.15%. f) Calculate the covariance for the securities. (3 Marks) (2 Marks) (4 Marks) your results. (2 Marks) (2 Marks) (2 Marks) (2 Marks) (5 Marks) Con
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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