4 Consider a mutual fund with OMR 400 million in assets at the start of the year and with 20 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of OMR4 million. The stocks included in the portfolio increases in price by 10%, but no securities are sold and there are no capital gain distributions. The fund charges fees of 3%, which are deducted from the portfolio assets at year end. What is the net asset value at the start and end of the year? What is the rate of return for an investor in the fund? s. You manage an equity fund with an expected risk premium of 8% and an expected standard deviation of 10%. The rate on Treasury bills is 5%. Your client chooses to invest OMR70,000 of her portfolio in your equity fund and OMR30.000 in a T-bill money market fund. What is the expected return and standard deviation of retum on your client's portfolio? On the basis of the utility formula below, which investment would you select if you were risk averse with A = 42 Laser Ein 12 230 015 021 21 0.24 0.21 7. The following data are available to you as portfolio manager: Estimated retum Beta 10 30 H 35 2.5 c 30 10 175 13 E 200 IS Market Index 25 Coverment Security 12 In terms of the security market line, which of the securities listed above are underpriced? by Assuming that a portfolio is constructed using equal proportions of the five securities listed above, calculate the expected return and risk of such a portfolio