Question: please help QUESTION TWO Historical performance information on the capital market and a mutual fund Yearwal fund Mutual fund Return on Return on Gout Beta
QUESTION TWO Historical performance information on the capital market and a mutual fund Yearwal fund Mutual fund Return on Return on Gout Beta c) markerinde perc 13.00 3.30 series 0.40 6.50 1 2 3 4 5 0.75 0.95 070 1.00 0.90 0.80 0.75 0.65 0.20 6 7 8 9 10 -8.50 4.00 1400 IR SO 5.70 8.20 2700 18.00 25.00 2.00 12.00 TR00 10.00 700 20.00 24.00 -5.00 -5.00 650 6.00 6.00 5.75 5.75 6.00 5.50 3.50 6.00 Calculate the a. Reward to variability ratio (3Marks) b. Reward to volatility ration (3Marks) c. Explain you results (2Marks) QUESTION THREE a) Discuss how diversification theory can be applied in your organization to maximize wealth (4Marks) b) Explain at least four strategies which can be used by an investor to allocate his investments in a portfolio (4Marks) c) Most developing markets like New York Stock Market have been using black Scholes Model in maximizing shareholders wealth. In relation to Kenyan stock market (NSE). discuss how this model can be used to maximize on investors returns. (4Marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
