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Financial Assets Year (NS) Shares Bonds Derivatives 2021 367 522 980 2022 620 578 730 2023 407 830 630 2024 237 730 510 2025 652

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Financial Assets Year (NS) Shares Bonds Derivatives 2021 367 522 980 2022 620 578 730 2023 407 830 630 2024 237 730 510 2025 652 680 570 Required: 2.1.Compute the expected return for investing into Bonds only? (2 marks) 2.2.Compute the following items for investing in a portfolio that is made up of 10% of derivatives and the rest in the shares market? a) The expected return? (11 marks) b) The risk involved in such portfolio? (5 marks) 2.3. Would you choose to invest into the Bonds market or into the portfolio of 10% derivatives and the rest in shares? Support your answer. (2 marks)

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