-There must be at least a 25% investment in each equity instrument What follows is a numeric fill in the blank question with 10 blanks. -The entire R1 million needs to be invested Use the Sharpe ratio to determine which two assets to invest in given the information in the table below. Risk free rate is 5%. -The beta of the portfolio should not exceed that of the market Enter the weightings of the optimal portfolio in the table below as a percentage to 2 decimal places. shares Asset Weightings A C D Return 12,34% 8,7096 6,52% 9,7296 Treasury Bill Blank 15. Fill in the blank, read surrounding text. Beta 11,7 1,2 10,8 1,8 Std Dev 5,68% 12,24% 15,78% 17,64% share 1 (with higher return Blank 16. Fill in the blank, read surrounding text. Blank 11. Fill in the blank, read surrounding text. Blank 12. Fill in the blank, read surrounding text. Blank 13. Fill in the blank, read surrounding text. Blank 14. Fill in the blank, read surrounding text. Share 2 (with lower return) Blank 17. Fill in the blank, read surrounding text. Sharpe a. What is the portfolio return ? Blank 18. Fill in the blank, read surrounding text. % b. What is the portfolio beta ? Blank 19. Fill in the blank, read surrounding text. You are required to determine the optimal portfolio that maximizes returns on a R1 million investment while reducing the systemic risk. Use the two assets that you picked as being the better of the four according to the Sharpe Ratio along with the treasury bill which has a yield of 5% as your risk free proxy to determine the weights of the optimal portfolio. You must however consider the following stipulations of your mandate as a portfolio manager: c. Calculate the Treynor Ratio: Blank 20. Fill in the blank, read surrounding text. % -Money market investment investments should not exceed 50% of the portfolio (TBill) -No shorting of stock and no leverage is to be used End of document I -There must be at least a 25% investment in each equity instrument What follows is a numeric fill in the blank question with 10 blanks. -The entire R1 million needs to be invested Use the Sharpe ratio to determine which two assets to invest in given the information in the table below. Risk free rate is 5%. -The beta of the portfolio should not exceed that of the market Enter the weightings of the optimal portfolio in the table below as a percentage to 2 decimal places. shares Asset Weightings A C D Return 12,34% 8,7096 6,52% 9,7296 Treasury Bill Blank 15. Fill in the blank, read surrounding text. Beta 11,7 1,2 10,8 1,8 Std Dev 5,68% 12,24% 15,78% 17,64% share 1 (with higher return Blank 16. Fill in the blank, read surrounding text. Blank 11. Fill in the blank, read surrounding text. Blank 12. Fill in the blank, read surrounding text. Blank 13. Fill in the blank, read surrounding text. Blank 14. Fill in the blank, read surrounding text. Share 2 (with lower return) Blank 17. Fill in the blank, read surrounding text. Sharpe a. What is the portfolio return ? Blank 18. Fill in the blank, read surrounding text. % b. What is the portfolio beta ? Blank 19. Fill in the blank, read surrounding text. You are required to determine the optimal portfolio that maximizes returns on a R1 million investment while reducing the systemic risk. Use the two assets that you picked as being the better of the four according to the Sharpe Ratio along with the treasury bill which has a yield of 5% as your risk free proxy to determine the weights of the optimal portfolio. You must however consider the following stipulations of your mandate as a portfolio manager: c. Calculate the Treynor Ratio: Blank 20. Fill in the blank, read surrounding text. % -Money market investment investments should not exceed 50% of the portfolio (TBill) -No shorting of stock and no leverage is to be used End of document