Mr. Ahmed aged 62 is the father of Mr. Moosa aged 28. Ahmed is the retired employee of Bank Nizwa and Moosa is working with Oman Tel from past 5 years. Mr. Ahmed has a saving of OMR 120,000 and Moosa has a saving of OMR 10,000. You are required to provide investment advice to Ahmed and Moosa on making a good investment portfolio with the available funds they have. Calculate the value of the funds after one year. Assume that the returns are achieved by all the securities in which investments are made. Show your calculations. Also find the standard deviation and covariance of their portfolio. Sr. No Instrument Returns Probability 2
Mr. Ahmed aged 62 is the father of Mr. Moosa aged 28. Ahmed is the retired employee of Bank Nizwa and Moosa is working with Oman Tel from past 5 years. Mr. Ahmed has a saving of OMR 120,000 and Moosa has a saving of OMR 10,000. You are required to provide investment advice to Ahmed and Moosa on making a good investment portfolio with the available funds they have. Calculate the value of the funds after one year. Assume that the returns are achieved by all the securities in which investments are made. Show your calculations. Also find the standard deviation and covariance of their portfolio. Sr. No Instrument Returns Probability 2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Mr. Ahmed aged 62 is the father of Mr. Moosa aged 28. Ahmed is the retired employee of Bank
Nizwa and Moosa is working with Oman Tel from past 5 years.
Mr. Ahmed has a saving of OMR 120,000 and Moosa has a saving of OMR 10,000.
You are required to provide investment advice to Ahmed and Moosa on making a good
investment portfolio with the available funds they have.
Calculate the value of the funds after one year. Assume that the returns are achieved by
all the securities in which investments are made. Show your calculations.
Also find the standard deviation and covariance of their portfolio.
Sr. No
Instrument
Returns
Probability](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48598a80-5b70-4db0-94fe-896df73de9df%2Fa2cccbde-e9c8-416d-8565-94541d5a39da%2Fpdd75xh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mr. Ahmed aged 62 is the father of Mr. Moosa aged 28. Ahmed is the retired employee of Bank
Nizwa and Moosa is working with Oman Tel from past 5 years.
Mr. Ahmed has a saving of OMR 120,000 and Moosa has a saving of OMR 10,000.
You are required to provide investment advice to Ahmed and Moosa on making a good
investment portfolio with the available funds they have.
Calculate the value of the funds after one year. Assume that the returns are achieved by
all the securities in which investments are made. Show your calculations.
Also find the standard deviation and covariance of their portfolio.
Sr. No
Instrument
Returns
Probability
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