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You are supplied with information about three securities (G, P & Q) and the market...

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Finance

You are supplied with information about three securities (G, P & Q) and the market (M), shown in the table below. In addition, treasury bills yield 1% and the market is expected to earn 5% more than t-bills.
\table[[Security,SD,Correlations],[Market,G,P,Q],[G,0.15,0.80,1.00,0.40,0.30],[P,0.30,0.50,0.40,1.00,0.25],[Q,0.20,0.40,0.30,0.25,1.00],[Market,0.10,1.00,0.80,0.50,0.40]]
Required:
(a) Compute the beta and expected return of each security, G, P & Q.(6 marks)
B) What would be the expected return and stand dertation of a portfolio that invested 30% of its funds in G,20% in P and 50% in Q?You are supplied with information about three securities (G, P & Q) and the market (M), shown in the table below. In addition, treasury bills yield 1% and the market is expected to earn 5% more than t-bills.
\table[[Security,SD,Correlations],[Market,G,P,Q],[G,0.15,0.80,1.00,0.40,0.30],[P,0.30,0.50,0.40,1.00,0.25],[Q,0.20,0.40,0.30,0.25,1.00],[Market,0.10,1.00,0.80,0.50,0.40]]
Required:
(a) Compute the beta and expected return of each security, G, P & Q.(6 marks)
B) What would be the expected return and stand dertation of a portfolio that invested 30% of its funds in G,20% in P and 50% in Q?
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