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Page 1: 1 Answer all questions on PDF in this order. Show all your work Section A A 1 You are offered an investment that

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Page 1: 1 Answer all questions on PDF in this order. Show all your work Section A A 1 You are offered an investment that pays $150 in 3 years $250 in 4 years and 5100 in 10 years. You can borrow/invest at 66% with quarterly compounding. If you were offered a price of 5845 for this investment, would you accept? (5 marks) A 2 Using a diagram, show the portfolio options between two risk assets in mean-wanancesce assuming those assets are not perfectly (negatively or positively correlated Identity MVP. opportunity feasible set and efficient set (5 marks) Send a chat 7:06 1 A3 What is the efficient market hypothesis? Doefficient markets mean we don't make money! Explain (5 marks) A 4 Compare geometric average with arithmetic average of a set of historical returns which a higher and why? (5 marks O

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