6.
Template #6: Two Tiered Calc
If Barry decides on Option 2, calculate the immediate taxes payable? Assume Barry, Lee and Michael will each have equal ownership (1/3 of the property each)
[1.5 Mark]
Template #6a: List with Two Tiered Calc
What is the expected gross and net rates of return for Jane’s investment portfolio? [3 Mark]
Template #6b: List with One Tiered Calc
Jimmy has recommended a portfolio with the following data:
Balanced Growth Portfolio
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- Fund Beta = 0.8
- One-Year Historical Return = 10%
- Expected Annual Rate of Return = 6%
- Standard Deviation = 7%
Calculate the Sharpe Ratio and Alpha for both Roger’s mutual fund portfolio and Jimmy’s recommended portfolio. Finally, recommend the best option and an appropriate rationale? [5 Mark]