You next client, is Office Pro, a producer of office furniture and you were asked to evaluate the risk and return of two assets (Asset S and Asset T) which it is considering for its asset portfolio.

You checked online for the company?s financial statements and found the following historical data for the two assets for the past ten years.

You believe that the past years are a good indicator of the future performance of the assets and the assets risks can be assessed on a standalone basis using standard deviation and coefficient of variation and as a part of Office Pro?s existing portfolio of assets using the Capital Asset Pricing

Model (CAPM).

C. Your Manager, has asked you to prepare a report which will assist in making a decision for Office Pro. The following are some of the highlights of your report, assuming the market has a risk-free rate of 8 percent and the return on the market is 15 percent:

1. The Rate of Return for each Asset per year for 2007 to 2016.

2. Each asset?s average rate of return based on the historical annual data provided.

3. Asset S and Asset T?s standard deviation and coefficient of variation.

4. Comment on the risk and return for each asset based on your answers to 2 and 3 above.

5. The required return for each asset.

6. A recommendation on investing in which the two assets, giving reasons for your recommendation.

7. Comment on the use of standard deviation as oppose to the use of CAPM as a risk measurement.

Provide the necessary details and recommendations to your Manger for each of the above mentioned clients. Kindly state all assumptions made in your recommendations/workings.

You next client, is Office Pro, a producer of office furniture and you were asked to evaluate the risk and return of two assets (Asset S and Asset T) which it is considering for its asset portfolio. You checked online for the company's financial statements and found the following historical data for the two assets for the past ten years. You believe that the past years are a good indicator of the future performance of the assets and the assets risks can be assessed on a standalone basis using standard deviation and coefficient of variation and as a part of Office Pro's existing portfolio of assets using the Capital Asset Pricing Model (CAPM). C. Your Manager, has asked you to prepare a report which will assist in making a decision for Office Pro. The following are some of the highlights of your report, assuming the market has a risk-free rate of 8 percent and the return on the market is 15 percent: 1. The Rate of Return for each Asset per year for 2007 to 2016. 2. Each asset's average rate of return based on the historical annual data provided. 3. Asset S and Asset T's standard deviation and coefficient of variation. 4. Comment on the risk and return for each asset based on your answers to 2 and 3 above. 5. The required return for each asset. 6. A recommendation on investing in which the two assets, giving reasons for your recommendation. 7. Comment on the use of standard deviation as oppose to the use of CAPM as a risk measurement. Provide the necessary details and recommendations to your Manger for each of the above mentioned clients. Kindly state all assumptions made in your recommendations/workings