Question: Fidelity Fund II is considering new stock selection analysis as follows: Stock A Stock B Nikkei (A,B) 6 month Tbill 1- E(R) Portfolio 1

Fidelity Fund II is considering new stock selection analysis as follows: Stock

A Stock B Nikkei (A,B) 6 month Tbill 1- E(R) Portfolio 1

Fidelity Fund II is considering new stock selection analysis as follows: Stock A Stock B Nikkei (A,B) 6 month Tbill 1- E(R) Portfolio 1 Portfolio 2 Portfolio 3 10% 8% 8% Stock A 40% 30% 60% -0,5 3% 6 5% 12% 10% Calculate the expected Return, the Volatility and Sharp ratio for the following Hypothetic portfolios: 0,8 1,5 1 Stock B 60% 40% 10% T-bill 30% 30% 2- Please interpret the outcomes of question 1, which portfolio is the best based on MPT? 3- Calculate the minimum required rate of return for each stock. Please interpret the outcomes Calculate the beta of each portfolio and calculate the Treynor ratio

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