required 1. Calculate the return of each portfolio (use geometric returns). /10/ 2. Calculate the standard deviation of each portfolio. (You need to calculate the variance and covariance between the returns first). /10/ 3. Analyse the risk and return of each portfolio and recommend your choice to Harry Berghaus and provide justifications. /15/

NEW . = Chegg Study Textbook Solutions Expert Q&A Study Pack Practice As a graduate student, you are employed as a finance intern at Berghaus and Associates. Harry Berghaus, one of the firm's founders has been talking to you about managing a portfolio. As with any investment, you are concerned about the risk and potential return. More specifically, because the company holds a diversified portfolio, you want to analyses the risk and return of two different portfolios for a 2 weeks period. There are 2 companies which are: Capitec Bank Holdings Limited and Distell Group Holdings Limited You have $ 100 000 to invest in each portfolio (notional amounts). Choose your own weightings. So youu are purchasing hypothetical shares worth $ 100 000 for each portfolio. Monitor the movement in your shares daily opening and closing prices). After a 2-weeks period, you need to sell your notional investment The data of 2 companles for week 1 and week 2 is presented below: Capitec Bank Holdings Limited (CPI.JO) WEEK 2 Date Open High Low Close* Adj Close** Volume 18-Sep-20 97,499.00 98,236.00 94,923.00 95,404.00 95,404.00 434,131 17-Sep-20 98,000.00 98,675.00 95,515.00 97,238.00 97,238.00 636,917 16-Sep-20 97,900.00 99,234.00 96,155.00 99,234.00 99,234.00 437,684 15-Sep-20 97,948.00 97,959.00 96,31200 97,696.00 97,696.00 477,496 14-Sep-20 94,600.00 97,500.00 94,81100 97,11200 97,11200 336,387 WEEK 1 11-Sep-20 98,897.00 98,800.00 94,533.00 95,632.00 95,63200 366,964 10-Sep-20 96,200.00 99,600.00 95,156.00 99,33200 99,33200 695,817 9-Sep-20 90,500.00 96,160.00 89,105.00 96,160.00 96,160.00 549,216 8-Sep-20 87,348.00 91,000.00 87,558.00 90,000.00 90,000.00 344,765 7-Sep-20 86,600.00 88,60200 84.715.00 88,177.00 88,177.00 216,530 Distell Group Holdings Limited (DGH.JO) WEEK 2 Date Open High Low Close* Adj Close** Volume 18-Sep-20 7,55100 7,568.00 7.387.00 7,420.00 7,420.00 310,328 17-Sep-20 7,380.00 7,64200 7,321.00 7,568.00 7,568.00 185,001 16-Sep-20 7,206.00 7,380.00 7,067.00 7,380.00 7,380.00 341,950 15-Sep-20 7,300.00 7,313.00 7,064.00 7,206.00 7,206.00 164585 14-Sep-20 7,420.00 7,397.00 7.175.00 7.220.00 7.220.00 238,111 WEEK1 11-Sep-20 7,240.00 7,328.00 7,063.00 7,174.00 7.174.00 65,259 10-Sep-20 7,350.00 7,399.00 7,226.00 7,248.00 7.248.00 143,330 9-Sep-20 7,420.00 7,350.00 7,13100 7,32200 7,322.00 191,691 8-Sep-20 7115.00 7,369.00 7,035.00 7.166.00 7.166.00 444,984 7-Sep-20 7150.00 7,163.00 6,99200 7,100.00 7.100.00 273,246 NEW . = Chegg Study Textbook Solutions Expert Q&A Study Pack Practice As a graduate student, you are employed as a finance intern at Berghaus and Associates. Harry Berghaus, one of the firm's founders has been talking to you about managing a portfolio. As with any investment, you are concerned about the risk and potential return. More specifically, because the company holds a diversified portfolio, you want to analyses the risk and return of two different portfolios for a 2 weeks period. There are 2 companies which are: Capitec Bank Holdings Limited and Distell Group Holdings Limited You have $ 100 000 to invest in each portfolio (notional amounts). Choose your own weightings. So youu are purchasing hypothetical shares worth $ 100 000 for each portfolio. Monitor the movement in your shares daily opening and closing prices). After a 2-weeks period, you need to sell your notional investment The data of 2 companles for week 1 and week 2 is presented below: Capitec Bank Holdings Limited (CPI.JO) WEEK 2 Date Open High Low Close* Adj Close** Volume 18-Sep-20 97,499.00 98,236.00 94,923.00 95,404.00 95,404.00 434,131 17-Sep-20 98,000.00 98,675.00 95,515.00 97,238.00 97,238.00 636,917 16-Sep-20 97,900.00 99,234.00 96,155.00 99,234.00 99,234.00 437,684 15-Sep-20 97,948.00 97,959.00 96,31200 97,696.00 97,696.00 477,496 14-Sep-20 94,600.00 97,500.00 94,81100 97,11200 97,11200 336,387 WEEK 1 11-Sep-20 98,897.00 98,800.00 94,533.00 95,632.00 95,63200 366,964 10-Sep-20 96,200.00 99,600.00 95,156.00 99,33200 99,33200 695,817 9-Sep-20 90,500.00 96,160.00 89,105.00 96,160.00 96,160.00 549,216 8-Sep-20 87,348.00 91,000.00 87,558.00 90,000.00 90,000.00 344,765 7-Sep-20 86,600.00 88,60200 84.715.00 88,177.00 88,177.00 216,530 Distell Group Holdings Limited (DGH.JO) WEEK 2 Date Open High Low Close* Adj Close** Volume 18-Sep-20 7,55100 7,568.00 7.387.00 7,420.00 7,420.00 310,328 17-Sep-20 7,380.00 7,64200 7,321.00 7,568.00 7,568.00 185,001 16-Sep-20 7,206.00 7,380.00 7,067.00 7,380.00 7,380.00 341,950 15-Sep-20 7,300.00 7,313.00 7,064.00 7,206.00 7,206.00 164585 14-Sep-20 7,420.00 7,397.00 7.175.00 7.220.00 7.220.00 238,111 WEEK1 11-Sep-20 7,240.00 7,328.00 7,063.00 7,174.00 7.174.00 65,259 10-Sep-20 7,350.00 7,399.00 7,226.00 7,248.00 7.248.00 143,330 9-Sep-20 7,420.00 7,350.00 7,13100 7,32200 7,322.00 191,691 8-Sep-20 7115.00 7,369.00 7,035.00 7.166.00 7.166.00 444,984 7-Sep-20 7150.00 7,163.00 6,99200 7,100.00 7.100.00 273,246