Question 1 Following the recent performance of Bakwa, Todome and Abrani shares on the Ghana Stock Exchange, you are to use the information to analyse their situation. Bakwa shares (B) Todome shares (T) Abrani Shares (A) Sale Purchas Dividen Sale Purchas Dividen Sale Purchas Dividen price e price d price e price d price e price d 0.9 0.75 0.02 MAY 10.8 0.75 -2 0.78 0.75 0.04 5.5 0.73 0.75 0.6 0.75 0.04 0.85 0.75 0.06 525872 4 2.5 1.5 1 3 1.5 0.02 1 1.5 0.5 1.5 0.04 4 1.5 1.8 1.5 0.04 (i) (ii) Calculate the holding period return for the three Assets Classes. Use above information to: (9 Marks) (a) Using arithmetic method, calculate the return of the three assets. (b) Find the weights and the portfolio return. (3 Marks) (3 Marks) (c) Calculate the risk of Todome and Abrani explain the results. (6 Marks) (iii) Calculate the covariance of Todome and Abrani shares and explain whether portfolio is well diversified or not base on the results. (3 Marks) (iv) Compute the correlation coefficient. (2 Marks) (v) Calculate the weights and portfolio risk for Todome and Abrani shares. (4 Marks) [Total: 30 Marks]