Question 2) A.Portfolio P and Q consist only few stocks while R and S contains many securities from different sectors. Portfolio Average Annual Rate of Return Standard Deviation Beta P 17% 20% 1.1 Q 24 18 2.1 R 11 10 0.5 S 16 14 1.5 S&P 500 14 12 1.0 Required: (Marks 05) 1. Use appropriate portfolio performance tool and identify the which portfolio is performing better. Also provide justification that why you are using that particular tool. You may use different tools for different portfolios. 2. What should be the rate of return of each portfolio, if standard deviation of each portfolio is equalized with market standard deviation by investing certain portion in T-bills having 7% return. - B. Mr. Mir is excited to see higher performance of his portfolio by 3% more than the market. But when he thoroughly reviews the stocks of his portfolio he finds very few mispriced securities which have contributed towards the super performance. According to you what other factor must have helped him to perform better than market. (Marks 02) Question 2) A.Portfolio P and Q consist only few stocks while R and S contains many securities from different sectors. Portfolio Average Annual Rate of Return Standard Deviation Beta P 17% 20% 1.1 Q 24 18 2.1 R 11 10 0.5 S 16 14 1.5 S&P 500 14 12 1.0 Required: (Marks 05) 1. Use appropriate portfolio performance tool and identify the which portfolio is performing better. Also provide justification that why you are using that particular tool. You may use different tools for different portfolios. 2. What should be the rate of return of each portfolio, if standard deviation of each portfolio is equalized with market standard deviation by investing certain portion in T-bills having 7% return. - B. Mr. Mir is excited to see higher performance of his portfolio by 3% more than the market. But when he thoroughly reviews the stocks of his portfolio he finds very few mispriced securities which have contributed towards the super performance. According to you what other factor must have helped him to perform better than market. (Marks 02)