Question
Problem #1: You are the investment consultant for a Saudi Arabian hospital to assess the risk for its future investments. There are three potential opportunities:
Problem #1: You are the investment consultant for a Saudi Arabian hospital to assess the risk for its future investments. There are three potential opportunities: Investing in Clinic A, or Clinic B or Clinic C. They have the following probabilities with regard to their return on investment: What is the expected return for each clinic? Calculate the standard deviation of return for each clinic? If the hospital is risk averse, which clinic would you recommend? If the hospital wants the highest, return which clinic would you recommend? If the hospital wants a good return but with a medium level of risk, which clinic would you recommend? Problem #2: The hospital invests in several Mutual Funds Calculate the required rate of return for each fund. Problem #3: Mutual Fund D is made up of the following stocks Based on this data calculate the portfolios return and Beta Problem #4: You are provided with the following information about a portfolio Calculate the required rate of return for portfolio using CAPM
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