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Question 2 (Total 9 marks) Required: a. Given the following market values of stocks in your portfolio and their forecasted rates of return, what is

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Question 2 (Total 9 marks) Required: a. Given the following market values of stocks in your portfolio and their forecasted rates of return, what is the expected rate of return for your portfolio? (4 marks) Stock Market value ($ millions) Forecasted returns A $15,000 14% B $17,000 -4% C $32,000 18% D $23,000 16% E $7,000 5% b. Draw a graph of the Markowitz efficient frontier, label the X-axis and Y-axis and three dominant portfolios on your graph. Explain the concept of dominate portfolios, e.g., why they dominate other portfolios in term of risk and return trade off? (5 marks) Question 2 (Total 9 marks) Required: a. Given the following market values of stocks in your portfolio and their forecasted rates of return, what is the expected rate of return for your portfolio? (4 marks) Stock Market value ($ millions) Forecasted returns A $15,000 14% B $17,000 -4% C $32,000 18% D $23,000 16% E $7,000 5% b. Draw a graph of the Markowitz efficient frontier, label the X-axis and Y-axis and three dominant portfolios on your graph. Explain the concept of dominate portfolios, e.g., why they dominate other portfolios in term of risk and return trade off

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