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Task 2: Determine your portfolio's capital allocation/best weights, as well as its risk and return. Lo2, LO3 & L04 (Marks: 25) Once your portfolio is

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Task 2: Determine your portfolio's capital allocation/best weights, as well as its risk and return. Lo2, LO3 & L04 (Marks: 25) Once your portfolio is complete, use the following formula to calculate the portfolio's risk (Use a spreadsheet for the calculation here). Portfolio of = wl'ol? + w2o2? + w3'3? + w3*3* + w5a5* + 2w1w20102p(1,2) + 2w1w30103p(1,3) + 2w1w40104p(1,4) + 2w1w50105p(1,5) + 2w2w30263p(2,3) 2w2w40204p(2,4) + 2w2w50205p(2,5) + 2w3w40304p(3,4) + 2w3w56305p(3,5) 2w4w50405p(4,5) Hint: Begin with equal weights and gradually increase/ decrease them (5 shares-5 weights) until you achieve the lowest Sigma for your portfolio Make use of a spreadsheet for this purpose. This is how the weights will be determined (LO2). Once the weight for each share has been determined, you can calculate the expected rate of return and risk of your risky portolfio (L03). You can consult with financial market experts about the best performing shares over the last three years, as well as examine the candlesticks and waves of the shares you want to include in your portfolio over the last three years. (L04). Task 2: Determine your portfolio's capital allocation/best weights, as well as its risk and return. Lo2, LO3 & L04 (Marks: 25) Once your portfolio is complete, use the following formula to calculate the portfolio's risk (Use a spreadsheet for the calculation here). Portfolio of = wl'ol? + w2o2? + w3'3? + w3*3* + w5a5* + 2w1w20102p(1,2) + 2w1w30103p(1,3) + 2w1w40104p(1,4) + 2w1w50105p(1,5) + 2w2w30263p(2,3) 2w2w40204p(2,4) + 2w2w50205p(2,5) + 2w3w40304p(3,4) + 2w3w56305p(3,5) 2w4w50405p(4,5) Hint: Begin with equal weights and gradually increase/ decrease them (5 shares-5 weights) until you achieve the lowest Sigma for your portfolio Make use of a spreadsheet for this purpose. This is how the weights will be determined (LO2). Once the weight for each share has been determined, you can calculate the expected rate of return and risk of your risky portolfio (L03). You can consult with financial market experts about the best performing shares over the last three years, as well as examine the candlesticks and waves of the shares you want to include in your portfolio over the last three years. (L04)

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