value value 300 315 Question One: (6 Marks) You have the following information regarding your investment which spans over 3 years. Then compute the following: (1) The HPR for each year. (2) The HPY for each year. (3) Compute the Arithmetic Mean for your proposed investment. (4) Compute the Geometric Mean for your proposed investment. (Show your work) Year Beginning Ending The holding The holding period return period yield (HPR) (HPY) 1 2 315 383 3 383 310 Question One: You have the following data, based on which workout the below requirements (6 Marks) Economic condition Probability rate of return Recession 0.25 -7% Normal 0.65 7% Boom 0.10 25% 1. The expected rate of return 2. The standard deviation of the rate of returns 3. The coefficient of variation of the rate of returns Question Three: Comment on the four major stages of the individual life Cycle. (5 Marks) Question Four: (8 Marks) (1) Comment on the reasons of why investors should consider the global investment portfolios while constructing their investment portfolios. (2) Differentiate between Debentures and Subordinated bond