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note please provide all answer in a step by step with all calculated formulas and steps dont give me answer in a images foam otherwise
note please provide all answer in a step by step with all calculated formulas and steps dont give me answer in a images foam otherwise i will complain to chegg provide answer in a word column foam dont upload excel images
just provide all answer in a word format thanks please read notice i uploaded this question 4 time bt i dont know why expert not read notice
Q No 4 Assume you are a portfolio manager at JS Global Capital Ltd. Recently you came across three attractive stocks and want to create a portfolio investment in these three stocks. The details of the stocks are given below: Company name Volatility Weight in Correlation with the (Standard deviation) Portfolio market portfolio Meezan Bank Ltd 12% 0.25 0.40 Lucky Cement Ltd 25% 0.35 0.60 KE Ltd 13% 0.40 0.50 The expected return on the market portfolio is 8% and its volatility is 10%. The risk-free rate based on central bank's discount rate is 3%. (1.5 marks each) a. Calculate each of the stock's expected return and risk (beta) as compared to the market. b. What should be the expected return of the portfolio based on values calculated in part a. c. Calculate the beta of the portfolio? what does it tells regarding the riskiness of the portfolio? d. Using the values from part c, can you calculate the expected return of the portfolio? Is it similar to your answer in part b? Why or why not? Q No 4 Assume you are a portfolio manager at JS Global Capital Ltd. Recently you came across three attractive stocks and want to create a portfolio investment in these three stocks. The details of the stocks are given below: Company name Volatility Weight in Correlation with the (Standard deviation) Portfolio market portfolio Meezan Bank Ltd 12% 0.25 0.40 Lucky Cement Ltd 25% 0.35 0.60 KE Ltd 13% 0.40 0.50 The expected return on the market portfolio is 8% and its volatility is 10%. The risk-free rate based on central bank's discount rate is 3%. (1.5 marks each) a. Calculate each of the stock's expected return and risk (beta) as compared to the market. b. What should be the expected return of the portfolio based on values calculated in part a. c. Calculate the beta of the portfolio? what does it tells regarding the riskiness of the portfolio? d. Using the values from part c, can you calculate the expected return of the portfolio? Is it similar to your answer in part b? Why or why notStep by Step Solution
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