Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

3.47 Rating (180 Votes )

There are 3 Steps involved in it

Step: 1

1 Holding period return for the three Assets Classes Todome 09 08 08 x 100 125 Abrani 078 073 073 x ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting and Analysis

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

6th edition

9780077632182, 78025672, 77632184, 978-0078025679

More Books

Students also viewed these Accounting questions