Order Description
Question 2 – Compulsory
An investment portfolio that is comprised of four assets is given below.
provided include a correlation matrix, covariance matrix and an assumed risk-free rate.
Assume a risk-free (Rf) rate of 6.2%.
Required:
a) Calculate the expected return and risk for the Nikkei-225 and S&P/ASX-200 assets.
Then calculate the expected return and risk for the Nikkei-225, S&P/ASX-200, and Dow
Jones-30 assets.
b) Discuss your results from Part a) with reference to finance theory(ies).
