QUESTION 2 Ms Obang is reviewing the performance of one of the shares in her portfolio. She bought the share a year ago for £4.00 (ex- div). Over the year it paid a dividend of 20p and the share price...

these are simple mcq question ,please explain why you choose that particular option

Extracted text: QUESTION 2 Ms Obang is reviewing the performance of one of the shares in her portfolio. She bought the share a year ago for £4.00 (ex- div). Over the year it paid a dividend of 20p and the share price currently stands at £4.20 (ex-div). The shares equity beta is 1.4. The yield on short-date Treasury Bills over the year has been 1.2% and the Market Return is 6%. Using the CAPM, what has been the performance of the share over the last year? O A. 2.1% under-performance OB. 4.6% under-performance Oc. 2.1% over-performance OD. 4.6% over- performance O E. 1.6% over-performance


Extracted text: QUESTION 1 Mrs Azaz is going to invest in a two-share portfolio. You are given the following details of the two shares she is considering. She wishes to invest 60% in Share A and 40% in Share B. Share A Share B Returns 16.0 per cent 11.0 per cent Standard deviation 18.1 per cent 10.7 per cent The correlation coefficient between the two shares is 0.271. What is the expected risk and return of the investors portfolio? OA 14% Return 12.7% Standard Deviation O B. 14% Return 14.4% Standard Deviation OC. 14% Return 15.1% Standard Deviation O D. 13.5% Return 14.1% Standard Deviation O E. 13.5% Return 12.7% Standard Deviation