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  1. mathematics
  2. statistics
  3. consider a portfolio investment consisting of 40%

Consider a portfolio investment consisting of 40% invested in MTN, 60% invested in Multichoice Additional information: Expected return: MTN...

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Consider a portfolio investment consisting of 40%invested in MTN, 60% invested in Multichoice
Additional information:
Expected return:
MTN : -0,001986441
Multichoice: 0,003255932

3.1 Calculate the expected return of theportfolio
3.2 Calculate the covariance of the portfolio
3.3 Calculate the variance of the portfolio and standard deviationof the portfolio
3.4 Given that the risk free rate is 0.0002. Calculate the Sharperatio for the portfolio
3.5 Interpret the Sharpe ratio calculated in 3.4

Answer & Explanation Solved by verified expert
4.4 Ratings (753 Votes)
31The expected return of the portfolio is the average of the returnof the constituent securities weighted as per their proportion inthe portfolio So    See Answer
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