You are a financial investor who buys and sells in the securities market. Now you have a portfolio of all blue chips including $11600 of share A, $7800 of share B, $14900 of share C and $ 3200 of share D, respectively. (A) Compute the weight of the assets in your portfolio. (B) If your portfolio has provided you with returns 7.6%, 12.2%, -4.7% and 13.4% over the past four years respectively. Calculate the geometric average return of the portfolio for this period. (C) Assume that expected return of the stock A in your portfolio is 15.2%. The risk premiums of the stock of the same industry are 4.8%, betas of these stocks is 1.3 and the inflation rate was 4.7% calculate the risk free rate of return using capital market pricing model (CAPM) You have another portfolio that comprises of two shares only 1200 golden sand shares and 400 silver beach shares. Below is the data of the portfolio. Expect return 12%. 17% Correlation of coefficient (p) 20% 40% Compute the expected return of your portfolio (E) Compute the expected risk 9standard deviation) of portfolio. (F) You bought those two shares two years ago with total investment of $16000.golden sand paid a dividend of $4.4 / share per year. Silver beach paid a dividend of $7.5/share per year. Calculate your total capital gain of this portfolio if you today can sell golden sand for $12 per share and silver black for $18 per share.

Answer rating: 100% (QA)

A To calculate the weight of each asset in your portfolio divide the value of each asset by the tota... View the full answer