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Assist with Answers Mean Median Mean Median Peer Group Price-to-book Price-to-book Price-to-sale (P/S) Price-to-sale (PIS) (P/B) Sales Sh. million (P/B) Sales Sh. million Pharmaceuticals 11.244

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Mean Median Mean Median Peer Group Price-to-book Price-to-book Price-to-sale (P/S) Price-to-sale (PIS) (P/B) Sales Sh. "million" (P/B) Sales Sh. "million" Pharmaceuticals 11.244 8.50 17.416 9.06 Computer applications software 8.20 $ 28 6.84 288 Mayuno Limited belongs to the pharmaceuticals group and Ndovu Limited belongs to the computer applications software group. Required: (1i) The current price-to-book (P/B) ratio for each company. (4 marks) The current price-to-sales (P/S) ratio for each company (4 marks) Determine whether the share is overvalued. fairly valued or undervalued for each company based on the results obtained in (d) (1) and (it) above. (4 marks) (Total: 20 marks) ESTION THREEhen policy statement (IPS). Execut A study by Celtic mutual fund has revealed the following data in respect of three securities; Security Standard deviation, or Correlation with ("/% ) market index, p 20 0.60 18 0.95 12 0.75 The standard deviation of market portfolio is observed to be 15%. Required: Calculate the following: (1 ) Beta of the portfolio consisting of equal investment in each security The systematic risk of the portfolio. The unsystematic risk of the portfolio

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