Question: Please solve for all parts. For part (c), solve using the attached formula sheet. Show relevant workings. Question 1 You have recently been hired as

Please solve for all parts.

For part (c), solve using the attached formula sheet. Show relevant workings.

Question 1 You have recently been hired as a fund manager in the portfolio management team of a bank. Your Director, John Tan has arranged a meeting next week to present an investment proposal to a prospective client, Ghislaine Connors. Ms Connors, 70 years old, is interested to invest $1 million in an investment porLfolio with your bank. However, she is risk-averse and new to investment products. John suggests that Ghislaine's portfolio should comprise both equity and bonds. He has identied a blue-chip stock of Boss Bank (BB) and a \"AAA\" 3851' rated corporate bond of Superman Ltd (SM). Risk-free rate is given at 1.71% on a 30-year SGS Infrastructure Bond. Based on the bank's research team, the following table shows the annual returns (%) over the last 5 years for Bass Bank and Superman Ltd Bond: Year Returns on BB Stock (%) Returns on SM Bond CW) 2016 -6.29 8.23 2017 -9.31 -6.[10 2018 22.91 2.71 2019 7.67 19.69 2020 15.84 -5.25 (a) Compare the risk-reward proles of investing in stock and corporate bond. Would this risk-reward prole be the same for mutual funds? ( 1 2 marks) (h) According to the given table, appraise the performance of Boss Bank (BB) Stock and Superman Ltd (SM) Bond. Taking into consideration the risk prole of the investor, you are to judge from nancial industry standpoint, which return would he most appropriate to assess the performance of the portfolio? ( 1 0 marks) (e) Aer further consideration and feedback from you, John decides to ne-tune the above recommended portfolio as follows: Portfolio A 25% in BB Stock 75% in SM Bond Portfolio B 50% in BB Stock 50% in SM Bond Portfolio C 75% in BB Stock 25% in SM Bond Show the portfolio return and standard deviation based on the information found on both above tables. (18 marks) ((1) Based on your workings in part (c), discuss which portfolio is appropriate for Ghislaine Connors. You may state the assumptions made at deriving your answer. (20 marks) \f

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