Question: Performance Evaluation and Active Portfolio Management Difficulties in adjusting average returns for risk present a host of issues, as the proper measure of risk may

Performance Evaluation and Active Portfolio Management Difficulties in adjusting average returns for risk present a host of issues, as the proper measure of risk may not be obvious, and risk levels may change along with portfolio composition. (a)You purchased a rental property for K50 000 and sold it one year later K55 000. At the time of the sale, of the sale, you paid K2 000 in commission and K600 in taxes. If you received K6 000 in rental income (all of it received at the end of the year), what annual rate of return did you earn? (10 marks) (b)A two year investment of K2 000 results in a return of K150 at

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