Please do answer the question. Part B is on the next page. Thanks.

If you cannot, answer the question from either page 1 or 2

Answer this question only. thanks

Question 1 (a) Assume that you are currently employed as the financial analyst of Klopp Investment Ltd, which offers two types of Funds: CLASS A FUND AND CLASS B FUND The feestructure of the funds are as follows: CLASS A FUND. front end load(entry fee for 6% CLASS B FUND: Management fee of 0.8% annually plus back and load foes with 8% at the start of the year and fall by 1% every year that the investor hold the portfolio until the eight Other information Return on each fund is 20% per annum. Required Calculate the value of 25.000 investment in class A fund and Class B fundit shares sold 1) 23 3) One year years 10 years Ima You are provided with the following information on a given investment Holding Period Holding Period Return Required The Geometric Mean Return over 4 years for the above investment (1) The Arithmetic Mean Return over 4 years for the above investment 16 mars 13 marks] Page 13 A researcher provides you with the following information for two ricky Securities ABC d The correlation between the fund returns is OS. Required (a) (b) Given that an individual initially decides to invest 5% of his wealth in ARC Lid and 55% in XYZ Lid calculate the expected return and risk of the individual's portfolio 16 marks! The portfolio return and for the minimum variance portfolio [6 marks) The Sharpe Ratio of the securities and initial portfolio assuming a risk free rate of 13 marks Page 2 of 3 Question 1 (a) Assume that you are currently employed as the financial analyst of Klopp Investment Ltd, which offers two types of Funds: CLASS A FUND AND CLASS B FUND. The fee structure of the funds are as follows: CLASS A FUND: front end load (entry fee) for 6% CLASS B FUND: Management fee of 0.8% annually plus back-end load fees with 8% at the start of the year and fall by 1% every year that the investor hold the portfolio (until the eight year) Other information: Return on each fund is 24% per annum. Required: Calculate the value of Rs 25,000 investment in class A fund and Class B fund if shares sold after 1) One year 2) 4 years 3) 10 years [6 marks] (b) You are provided with the following information on a given investment: Year Holding Period Year Return Holding Period Return -20% 10% 24% 11% Required: (1) The Geometric Mean Return over 4 years for the above investment. [6 marks) (II) The Arithmetic Mean Return over 4 years for the above investment. [3 marks)