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Discuss two technical points that can affect short selling. (3 marks) Do your own research on ASX. What trading platforms currently operate on the ASX?

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Discuss two technical points that can affect short selling. (3 marks) Do your own research on ASX. What trading platforms currently operate on the ASX? (3 marks) c. Many domestic investors consider including various global securities in their portfolios. Whereas, a lot of investors also believe that international investing introduces additional risks. Provide you arguments on behalf of each. (5 marks) 53'!\" PART B: (50 marks) Use the following Excel files for the necessary data: 1. ASX 300 Index and its dividend yield: (BFF3121_ASX 300 Index and dividend yield .xls) 2. Risk free rate: (BFF3121_Risk free rate.xls) Part B (I) (10 Marks) a. Assume that ASX 300 Index represents the risky portfolio. Calculate the annual retum for the period 2011- 2020 for the risky portfolio using the data given for the ASX 300 Index. Then calculate the average return and standard deviation for the risky portfolio. b. Calculate the annual return for the period 2011-2020 for the risk-free asset using the data given for the risk-free asset. Then calculate the average retum for the risk-free asset. Part B (II) (1:) Marks) Using the answers from the above part B (i). let's assume, you want to construct a portfolio of risky and risk- free assets. You wish to generate a 7% return for your complete portfolio E(rc). Using the Capital Allocation Line (CAL) equation E(rc) = r f + y[E(rp) rf]. a. Calculate the portion that you need to invest in risky assets and (b). in risk-free assets. c. Calculate the standard deviation of the portfolio. Part B (Ill) (15 Marks) You went to your nancial advisor and you wanted to get an overview of the other available investment options. The advisor shows you the following available portfolios for investment that ts your investment criteria and their risk-retum combinations. You want to use the average Risk-free rate (from part B (I)) for your analysis and calculation. a. Select the best one among these using appropriate tool (formula) and provide your rationale for your selection. Show necessary calculations. b. Should you stick to your original portfolio or switch to one of the following? Explain

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