Learning Objectives d) What is the expected return for the Pride? (3 points) By the end of this homework you will be able to: . Calculate the risk and return of stand-alone and portfolio investments. e) What is the standard deviation of the Pride? (3 points) . Interpret risk and rate of return calculations to evaluate investment opportunities. f) What is the coefficient of variation for Pride? (3 points) Instructions Submit only ONE Word document that is typed for this assignment. I will not accept COPY AND PASTE HERE THE RELEVANT TABLE FROM YOUR EXCEL FILE TO assignments that are hand written. You must copy and paste-special relevant tables from your SUPPORT YOUR PREVIOUS ANSWERS (d), e), and f)) excel spreadsheet to support your answer in the document file. Points will be deducted if you upload an excel file in your submission and if you only give the final answer without showing g) Which franchise would you invest in? Explain your answer. (3 points) your working regardless of giving the correct answer. 2. Jackson Sports Holdings has a total investment of $500 million in four companies. 1. You have the opportunity to purchase the Daytona Tortugas or the USSSA Pride. The franchises will cost the same to buy, The probability distributions of your expected returns for Company Investment ($) Rate of Return Beta the franchises are as follows: Nike Inc. 230.000.000 10.0% Callaway Golf Co. 80.000.000 3.0% Daytona Tortugas Dick's Sporting Goods 160.000.000 7.5% Probability Projected Return ($) Under Armour 30.000.000 5.5% -200.000 Total 500.000.000 0.4 70.000 a) What is the expected rate of return for the portfolio? (4 points) 0.2 150.000 250.000 COPY AND PASTE HERE THE RELEVANT TABLE FROM YOUR EXCEL FILE TO a) What is the expected return for the Tortugas? (3 points) SUPPORT YOUR PREVIOUS ANSWER (a)). b) What is the standard deviation of the Tortugas? (3 points) b) The company is considering investing $200 million in Manchester United at a rate of return of 7 0%. Considering only the rate of return, would you advise them to invest in c) What is the coefficient of variation for Tortugas? (3 points) the company? Explain and show your working. Remember that the total investment increases as Manchester is now added to the portfolio. (4 points) COPY AND PASTE HERE THE RELEVANT TABLE FROM YOUR EXCEL FILE TO SUPPORT YOUR PREVIOUS ANSWERS (a), b), and c)). COPY AND PASTE HERE THE RELEVANT TABLE FROM YOUR EXCEL FILE TO SUPPORT YOUR PREVIOUS ANSWER (b)). c) What is the overall (weighted average) beta of this portfolio (without Manchester USSSA Pride United)? (4 points) Probability Projected Return ($) -100,000 20,000 COPY AND PASTE HERE THE RELEVANT TABLE FROM YOUR EXCEL FILE TO 50,000 SUPPORT YOUR PREVIOUS ANSWERS (C)). 100,000 d) Would you expect a rate of return above or below the average market return with this 200.000 portfolio? Explain. (2 points)