Highlights
Task:
Return and Risk (100 points)
Complete the following problems:
Problem #1:
You are the investment consultant for a Saudi Arabian hospital to assess the risk for its future investments.
There are three potential opportunities:
Investing in Clinic A, or Clinic B or Clinic C.
They have the following probabilities with regard to their return on investment:
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What is the expected return for each clinic?
Calculate the standard deviation of return for each clinic?
If the hospital is risk averse, which clinic would you recommend?
If the hospital wants the highest, return which clinic would you recommend?
If the hospital wants a good return but with a medium level of risk, which clinic would you recommend?
Problem #2:
The hospital invests in several Mutual Funds
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Calculate the required rate of return for each fund.
Problem #3:
Mutual Fund D is made up of the following stocks
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Based on this data calculate the portfolio’s return and Beta
Problem #4:
You are provided with the following information about a portfolio
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Calculate the required rate of return for portfolio using CAPM
You must show all your calculations for credit. Your calculations for this assignment must be submitted as an Excel file.
Present your findings in a paper 4-5 pages in length excluding the cover, the reference page, and the excel spreadsheet for Problems #1-4.
Be sure to include:
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