QUESTION ONE (25 Marks) Highveld Limited is considering putting together a portfolio containing two assets; T and B. Asset T will represent 45% of the rand value of the portfolio, and asset B will account for the other 55%. The expected returns over the next five years, 2016 to 2020 , for each of these assets, are given below in Table 1.1: lavie 1.1 Required: 1.1 Calculate the expected portfolio return, E(Rp) for each of the five years. (6 Marks) 1.2 Calculate the expected value of the portfolio returns over the 5-year period. (4 Marks) 1.3 Calculate the standard deviation of expected portfolio returns over the 5-year period. (6 Marks) 1.4 Calculate the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure? (3 Marks) 1.5 Calculate the geometric mean rate of return for each stock. Highlight the key differences between the arithmetic mean return and the geometric mean return for each stock. (6 Marks)