Mial Project Assume that after completion of your MBA you have started working as a financial planner at Capital Limited. In a second week of Job you have got assignment to invest Rupees 100.000 for a client. Because the funds to be invested in a business at the end of lycar, you have been instructed to plan for a 1-ye holding period. Moreover, you mage has to you to investment aime big win their probabilities and associated outcomes for now, disregard the stem the bottom of the date, you will fill in the blanks Nur 10 03 05 Is Capital staff has estimated the probability value for the state of the economy and also estimated the corresponding rate of retum on each alternative under each stue of the economy Nes.com is technology fim. Nawab collects past due debes and PK Steel Manufactures steel products. I capitalisman market portfolio that was a market-weighed fraction of all publicly traded socks on Pakistan exchange market you can invest in that portfolio and thus obtain crage stock market results Given the situation described, answer the following questions 1. Why is the hill's retum independent of the state of the ceny! De hills promise completely free reum? Explaint 2. Why are Ne.com cum expected to move with the conomy, whereas Nawab's are expected to move outlet to them! 3.Calculate the expected rate of return on each sherative 4. You should recognize that being a decision solely on expected returns is appropriate only for risk neutral individuals Your client is rikaverse the risks of each altomative is an important aspect of the decision One possible measure of the under det of retum Calculate this value for each alterative 5. What type of risk in mured by the standard deviation? variation (CV) is penerally regarded as being a better standalone risk than the standard deviation when the alienatives being considered have widely differing expected tur. Calculate the camere Suppene you created two-stock portfolio by iting Rupees 50.000 in Nescam and Rupees 50.000 in New Now Calculate the expected retum of portfolio, the standard deviation of folie and the efficient of variation of portfolio. Also write about how the rain of this two-stek portfelle compares with the riskines of the individual stocks if they were held in isolation? 8. Assume that the expected rates of return and the beta coefficients of the shortives supplied by an independent analyst are as follow LSI in a bota coefficient, and how are botas used in risk analysis? De the expected returns appear to be related each alternative's market risk? Is it possible to choose among the alienatives on the basis of the information developed the for? Accomes that the risk fundmin is expected to an are pofleri . While the county market line (SM) to calculate the required rate of retum on each alternative How do the expected rates of retum compare with the required me of Identity the served Mial Project Assume that after completion of your MBA you have started working as a financial planner at Capital Limited. In a second week of Job you have got assignment to invest Rupees 100.000 for a client. Because the funds to be invested in a business at the end of lycar, you have been instructed to plan for a 1-ye holding period. Moreover, you mage has to you to investment aime big win their probabilities and associated outcomes for now, disregard the stem the bottom of the date, you will fill in the blanks Nur 10 03 05 Is Capital staff has estimated the probability value for the state of the economy and also estimated the corresponding rate of retum on each alternative under each stue of the economy Nes.com is technology fim. Nawab collects past due debes and PK Steel Manufactures steel products. I capitalisman market portfolio that was a market-weighed fraction of all publicly traded socks on Pakistan exchange market you can invest in that portfolio and thus obtain crage stock market results Given the situation described, answer the following questions 1. Why is the hill's retum independent of the state of the ceny! De hills promise completely free reum? Explaint 2. Why are Ne.com cum expected to move with the conomy, whereas Nawab's are expected to move outlet to them! 3.Calculate the expected rate of return on each sherative 4. You should recognize that being a decision solely on expected returns is appropriate only for risk neutral individuals Your client is rikaverse the risks of each altomative is an important aspect of the decision One possible measure of the under det of retum Calculate this value for each alterative 5. What type of risk in mured by the standard deviation? variation (CV) is penerally regarded as being a better standalone risk than the standard deviation when the alienatives being considered have widely differing expected tur. Calculate the camere Suppene you created two-stock portfolio by iting Rupees 50.000 in Nescam and Rupees 50.000 in New Now Calculate the expected retum of portfolio, the standard deviation of folie and the efficient of variation of portfolio. Also write about how the rain of this two-stek portfelle compares with the riskines of the individual stocks if they were held in isolation? 8. Assume that the expected rates of return and the beta coefficients of the shortives supplied by an independent analyst are as follow LSI in a bota coefficient, and how are botas used in risk analysis? De the expected returns appear to be related each alternative's market risk? Is it possible to choose among the alienatives on the basis of the information developed the for? Accomes that the risk fundmin is expected to an are pofleri . While the county market line (SM) to calculate the required rate of retum on each alternative How do the expected rates of retum compare with the required me of Identity the served