A mutual Fund had a Net Asset Value (NAV) of $72m at the beginning of the year. During the year, a sum of $6m was distributed as Dividend besides $4m as Capital Gain distributions. At the end of the year, NAV was $84m.

Calculate total return for the year. The following two types of securities are available in the market for investment: (1.5 marks)

Security Return % Standard Deviation% Gilt-edge Security 7 0 Equity 25 30

Using the above two securities, if you are planning to invest $1,00,000 to construct a portfolio with a standard deviation of 24%, what is the return in $ of such portfolio? (1.5 marks)