Tom buys and sell in the securities market. Now he has aportfolio including: $10500 of share A,$7200 of share B, $14500 ofShare C and $3250 of Share D. Required:

1. Calculate the weights of the assets in his portfolio?
2. If his portfolio has provided him with return of 7.5%, 11.2%,-5.7% and 12.4% over the past four years, respectively. Calculatethe geometric average return of the portfolio for this period?
3. Assume the expected return of the stock A in his portfolio is14.3%. the risk premium on the stocks of the same industry are4.6%, betas of these stocks is 1.2 and the inflation rate was 3.6%.calculate the risk-free rate of return using Capital market pricingmodel (CAPM)?
4. He has another portfolio that comprises of two sharesonly:”1300 shares of company K and 350 shares of company Z.

Below is the data of your portfolio:

	K	Z
Expected return	13%	16%
Standard Deviation of return	21%	38%
Correlation of coefficient (p)	0.7

Calculate the expected return of his portfolio.

5)         Calculate theexpected risk (standard deviation of the portfolio).

6)         He boughtthose two shares 2 years ago with total investment of $15,000.Company k paid a dividend of $3.4/ share per year and Company Zpaid a dividend of $6.4 share per year. Calculate his total capitalgain of this portfolio if he today can sell shares of company K for$11/share and shares of company Z for 17/share?