a) Adrian is an active investor in the Australian Stock Exchange (ASX). His securities portfolio has provided him with the following returns over the past 5-year period: Required: i. Calculate the geometric average returns of Adrian's portfolio. (1 mark) ANSWER a (i): ** Answer box will enlarge as you type ii. Assume that the expected return of one of the stocks (Stock A) in Adrian's portfolio is 16.5%. If the market risk premium is 8.8%, the government bond rate of return is 6.2%. Calculate the beta coefficient of this share using Capital Asset Pricing Model (CAPM) and comment on the stock beta value. (2 marks) ANSWER a (ii): iii. Adrian has set up another portfolio (Portfolio 2) that comprises 65% of Gold shares and 35% of Silver shares. The table below has additional information on this portfolio. Compute the risk of portfolio 2. (3 marks) ANSWER a (iii)