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Kyle has been an active investor and has invested in quite a substantial portfolio already, the majority of which is in US equities. The sector

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Kyle has been an active investor and has invested in quite a substantial portfolio already, the majority of which is in US equities. The sector weights of his current portfolio and the S&P 500 Index are: Sector Consumer staples Healthcare Utilities Telecommunication Services Consumer Discretio Materials Ene Industrials Financials Information Techno Total Weight Portfolio Weight 18.4% 18.8% 7.2% 4.8% 10.8% 2.2% 9.4% 7.8% 9.5% S&P 500 10.6% 12.2% 3.4% 2.9% 36% 1 1.2% 10.3% 15.8% 18.3% 100.0% 100.0% Discuss Kyle's current equities portfolio by answering the following: Discuss whether Kyle's current portfolio appears to be defensively or offensively positioned. (a) 6 marks) (b) Discuss whether you expect the beta of Kyle's current portfolio to be more than, less than or equal to 1 (4 marks) (c) Discuss how you expect Kyle's current portfolio to perform if there is a major bull run in the stock market. (4 marks) Kyle has been an active investor and has invested in quite a substantial portfolio already, the majority of which is in US equities. The sector weights of his current portfolio and the S&P 500 Index are: Sector Consumer staples Healthcare Utilities Telecommunication Services Consumer Discretio Materials Ene Industrials Financials Information Techno Total Weight Portfolio Weight 18.4% 18.8% 7.2% 4.8% 10.8% 2.2% 9.4% 7.8% 9.5% S&P 500 10.6% 12.2% 3.4% 2.9% 36% 1 1.2% 10.3% 15.8% 18.3% 100.0% 100.0% Discuss Kyle's current equities portfolio by answering the following: Discuss whether Kyle's current portfolio appears to be defensively or offensively positioned. (a) 6 marks) (b) Discuss whether you expect the beta of Kyle's current portfolio to be more than, less than or equal to 1 (4 marks) (c) Discuss how you expect Kyle's current portfolio to perform if there is a major bull run in the stock market. (4 marks)

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