Question

1. a

You are examining two portfolios, A and B.; A consists of corporate bonds of a five-year average duration with an expected return of 7% and standard deviation of 4%. B consists of equity shares and direct real estate with an expected return of 12% and standard deviation of 9%. If the correlation coefficient between the two portfolios is 0.36, determine

the return of a portfolio 20% invested in A and the rest in B.

write your answer in decimal form to two decimal places

question 1 b

The standard deviation (risk) of a portfolio
20% invested in A and the rest in B. Write
your answer in decimal form to 4 decimal
places

question 1 c
Calculate the weights of A and B that give
at least a return of 9% with minimum risk.
in this question write the weight of A in
decimal form to 2 d.p.

question 1 d

Now write the weight of B calculated in the
previous question

question 1 e
calculate the weights of A and B that give at
least a return of 10% with minimum risk
In this question return the weight for A

question 1f

Now write the weight for B

please understand that i posted these as different questions it wouldn't make sense. please answer these all. I would really appreciate it

Answer 1