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Following the recent performance of Bakwa, Todome and Abrani shares on the Ghana Stock Exchange, you are to use the information to analyse their
Following the recent performance of Bakwa, Todome and Abrani shares on the Ghana Stock Exchange, you are to use the information to analyse their situation. Bakwa Shares(B). Shares(T). Sale price Purchase price price Purchase Price Abrani Shares(A) Purchase price 0.9 0.75 0.025 4 - 0.8 0.75 - 2 4 1 0.78 0.75 0.04 5.5 4 0.73 0.75 - 8 0.6 0.75 0.04 7 0.85 0.75 0.06 2 4 4 4 Dividend 2.5 1.5- 3 1.5 0.02 1 1.5 - 0.5 1.5 0.04 4 1.5 1.8 1.5 0.04 - Todome 2 - Dividend Sale Dividend Sale price (1) Calculate the holding period return for the three Assets Classes. (ii) Use above information to: (a) Using arithmetic method, calculate the return of the three assets. (b) Find the weights and the portfolio return. (c) Calculate the risk of Todome and Abrani explain the results. (iii) Calculate the covariance of Todome and Abrani shares and explain whether portfolio is well diversified or not base on the results. (iv) Compute the correlation coefficient. (V) Calculate the weights and portfolio risk for Todome and Abrani shares.
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1 Holding period return for the three Assets Classes Todome 09 08 08 x 100 125 Abrani 078 073 073 x ...Get Instant Access to Expert-Tailored Solutions
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