(i) You analyse the prospects of several companies and come to the following conclusions about the required return on each.

Stock	Required Return
Apple	18%
Facebook	8%
Pfizer	16%
Barclays	12%

You decide to invest 4,000 in Apple, 6,000 in Facebook, 12,000 in Pfizer, and 3,000 in Barclays. What is the required return on your portfolio? [5 points]

(ii) Sabichi Group plc places a semi-annual order of 24, 000 units at a price of 20 per unit. Its carrying cost is 15% and the order cost is 12 per order.

a) What is the most economical order quantity? [3 points]

b) How many orders need to be placed? [2 points]