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please show me all calculation Activity 2 Consider a portfolio with the following statistics. Assume the government bond rate is 8% pa. The average market

image text in transcribedplease show me all calculation

Activity 2 Consider a portfolio with the following statistics. Assume the government bond rate is 8% pa. The average market return is 14%. Share Amount Invested ($) Weighting % Beta x 8,000 0.5 Y 12,000 1.5 1. Plot all 4 assets above on the Risk / Er graph. 2. What is the equation of the SML? 3. What is the expected return on Share X and Share Y? 4. What is the expected return on the portfolio? 5. What is the risk of this portfolio? Based your answer in part 4, approximately what do you think the Pb will be ? Activity 3 What is the expected return on the below portfolio? HINT: There are three steps to solving this. Rate of Returns State of Economy Probability Share A Share B Share C Boom .60 14% 18% 26% Bust .40 8% 2% -2% Assuming 40% of funds are invested in Share A, 30% in Share B and 30% in Share C

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