You have been assigned to establish a portfolio for your clients, Encik Azmi and Puan Aini....
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You have been assigned to establish a portfolio for your clients, Encik Azmi and Puan Aini. Encik Azmi has a risk tolerance of 20 and Puan Aini has a risk tolerance of 50. Given below is the information on several portfolios. Portfolio A B C D E Expected Return (%) 5.5 9.7 7.6 8.0 14.0 Standard deviation (%) 6 8.124 11.3578 9 16.0624 Using Markowitz Portfolio Optimisation method, determine i. The best portfolio for Encik Azmi ii. The best portfolio for Puan Aini (6 marks) (6 marks) By showing calculation, determine the level of risk tolerance that will leave both investors indifferent between having Portfolio A and Portfolio B as their investment. (3 marks) If you are given an opportunity to invest, would you choose to invest in mutual fund? Why or why not? Justify your answer. (5 marks) You have been assigned to establish a portfolio for your clients, Encik Azmi and Puan Aini. Encik Azmi has a risk tolerance of 20 and Puan Aini has a risk tolerance of 50. Given below is the information on several portfolios. Portfolio A B C D E Expected Return (%) 5.5 9.7 7.6 8.0 14.0 Standard deviation (%) 6 8.124 11.3578 9 16.0624 Using Markowitz Portfolio Optimisation method, determine i. The best portfolio for Encik Azmi ii. The best portfolio for Puan Aini (6 marks) (6 marks) By showing calculation, determine the level of risk tolerance that will leave both investors indifferent between having Portfolio A and Portfolio B as their investment. (3 marks) If you are given an opportunity to invest, would you choose to invest in mutual fund? Why or why not? Justify your answer. (5 marks)
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i Using the Markowitz Portfolio Optimization method calculate the riskreturn tradeoffs for each portfolio as follows Portfolio A Expected Return A 55 ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
Posted Date:
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