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Calculate the risk of a portfolio which contains 75% of P and 25% oro. (10 Marks) Assume correlation coefficient between P and Q returns as
Calculate the risk of a portfolio which contains 75% of P and 25% oro. (10 Marks) Assume correlation coefficient between P and Q returns as 1 1) Calculate the risk of portfolio which contains 50% of Q and 50% of R. Assume correlation coefficient between Q and R returns as 4 (10 Marks) (10 marks) (Total 20 Marks) (4) Briefly explain The one stage cash dividend discount model which can apply to determine the value of a stock when the dividend growth rate, current dividend per share and the required rate of return are given. a) (6 marks) odel. Golden Light Group expects a 30% growth rate in dividends for the next 4 years After 4 years, dividends are expected to grow at a rate of 6% thereafter. If Golden Light has a current dividend of Rs.2.60 per share and the required rate of return is 19.35% determine the current price of Golden Light Group share. (14 Marks (Total 20 Marks) ) a) What is the market value of a bond with 6% coupon rate, interest paid semi annually and remaining maturity of 3 years. Assume the face value as Rs.100, 000/-and the current market yield as 10%. (6 marks)
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