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Kofi Nimo is an employee of PBC Limited. He has worked for the company for 15years. Throughout these years, he has been saving small proportions
Kofi Nimo is an employee of PBC Limited. He has worked for the company for 15years. Throughout these years, he has been saving small proportions of his monthly salary in the shares of various companies. The data below contain information on the various shares in the portfolio of Kofi Nimo. [15MARKS] Company shares Dividend Beta Price (GH) Expected (%) Return (%) Clydestone 130000 4.8 0.82 3.50 15 Sam Woode 80000 5.9 0.95 4.50 Hords 100000 4.3 1.01 2.50 14 GCB 150000 3.5 1.53 4.25 16 GTP 70000 5.4 1.27 3.75 12 9.5 The correlation between the shares in the portfolio is +0.99. The current market data indicates that the yield on government treasury bill is 5% and market return is 12%, 11. Estimate the return on Kofi Nimo's portfolio. Analyze the riskiness of Kofi Nimo's portfolio. Support your analysis with the necessary calculations. Recommend to Kofi Nimo, three (3) Possible portfolio combinations which will give a return that exceeds the current market retum. Support your recommendations with appropriate calculations. .:: 111
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