Portfolio, Risk and Returns

Question

Four securities have following expected return

A 15%

B 12%

C 30%

D 22%

Calculate the expected return for portfolio of all four securities under the following conditions:

The portfolio weights are 25% each.

The portfolio weights are 10% each in A & B and 40% each in C&D.

Instructions:

Assignment No.6 covers lectures 31-36.

Last date for submission of Assignment is April 21, 2016

You can consult the recommended book for this assignment.

Negative marking will be done for copied assignments and irrelevant details.

Show complete calculations and all formulae where required.

Make sure that you upload the Assignment before due date. No assignment will be accepted through E-mail after the due date.

Cheating or copying of assignment is strictly prohibited; No credit will be given to copied assignment.

Review the risks and returns thoroughly to solve the question.