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(b) Two assets have the following expected returns Year Asset B. Year Asset A Year 2 Rate a) State P Asset B, Year 2 Rate
(b) Two assets have the following expected returns Year Asset B. Year Asset A Year 2 Rate a) State P Asset B, Year 2 Rate To al 20% 896 p.al State Rate (p.a) State State 10% 1995 -698 Which asset is more risky in year ond? and year two? (10 marks) How much would Sh 10 million invested in the two assets at the beginning of year one have accumulated to at the end of year two if in year one W = 0.6 and in year two W -0.7 -0.7? (8 marks) Total = 25 marks
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