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1.2 equally Don Bow Limited is considering putting together a portfolio containing two asscta; X and Y. Assct X will represent 40% of the rand
1.2 equally Don Bow Limited is considering putting together a portfolio containing two asscta; X and Y. Assct X will represent 40% of the rand value of the portfolio, and asset Y will account for the other 60%. The expected returns over the next six years, 2015 to 2020, for cach of these assets, are given below in Table 1.2: Expected Return Amet X (%) Asmet Y (%) 14 20 2015 2016 14 18 2017 16 16 2018 17 14 2019 17 12 2020 19 10 Table 1.2 2 Required: 1.2.1 Calculate the expected portfolio return. E{mp) for each of the six years. (3 Marks) 1.2.2 Calculate the expected value of the portfolio returns over the 6-year period. (2 Marks) 1.2.3 Calculate the standard deviation of expected portfolio returns over the 6-year period
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