These are 2 questions from the topic of Portfolio Theory and CAPM.

Really need help on these questions in urgent.

Can anyone help on these questions with the calculation workings? Thanks so much.

Topic: Portfolio Theory and CAPM Question 1 X, Y and Z are securities. Data pertaining to these securities, the risk-free asset and the market portfolio (Mkt) are given in the following table: Portfolio STD(Ri) X 0.28 Y 0.23 Z 0.34 Rf 0.00 Mkt and COV(RX,RY) = 0.04 E(Ri) 0.17 0.05 0.10 i 1.5 0.0 - COV(Ri Rmkt) 0.015 0.048 0.000 0.020 CORREL(Ri Rmkt) 0.92 a. b. c. d. Calculate the missing betas. Calculate the missing expected returns. Fill in the remaining missing figures (as indicated by the dash). Compare the betas and standard deviations of X & Y. How do you explain the fact that X has a lower beta than Y yet a much higher standard deviation? e. Consider portfolio P below. Without doing any calculations, what is its beta? Portfolio P STD(Ri) 0.30 E(Ri) 0.125 i - f. Calculate the beta of a portfolio comprising of 60% of X and 40% of Y. g. For the portfolio in f., calculate its expected return and its covariance of returns with the market returns. h. Explain why the portfolio in f. is or is not efficient. Question 2 You are the financial manager for a firm which has two mutually exclusive investment opportunities available to it. The first opportunity, Project X involves an initial outlay of $3,800 and provides annual cash flows of $2,910 over an expected life of three years. The second opportunity, Project Y, involves an outlay of $4,000 and provides annual cash flows of $2,850 over an expected life of three years. One of your financial analysts has investigated each project fairly carefully by comparing them with similar projects undertaken by other firms. He has calculated that Project X has a of 1.5 and Project Y a of 1.0. The expected market return for the period of analysis is 13.00% p.a. and the return on the riskless investment is 5.00% p.a. a. Using a discount rate of 10.00% for both projects, which project is preferred? b. Given the information supplied, what return should be used when evaluating each project? c. Taking the result in (b) into consideration, would the result from (a) change