Section-A 1. James Green is considering building an investment portfolio Portfolio 2) containing two assets, X and Y. Asset X will represent 40% of the dollar value of the portfolio and asset Y will account for the other 60%. The returns over 3 years of the two assets X and Y are provided below: Years Y 2010 10% 35% 2011 129 20% 2012 15% 17% a) Calculate expected retum of the portfolio Z for each year and over 3 years period. (3+1) b) Calculate risk and coefficient of variation for portfolio Z. (3+2) c) Will it be beneficial for James Green to invest in the portfolio? Briefly explain why. (2) d) If market retum is 12% and risk-free rate of return is 4.7%, then find the coefficient of non-diversifiable risk of Portfolio Z, where investor is indifferent between required return and expected return of the portfolio. (2 marks)