- 2 Marks
Question
Your Uncle has won lotteries and has decided to invest the funds in various securities. His financial advisor advised him to invest 40% of the proceeds into Government Securities (Treasury Bills) and the balance invested in the Stock Market, with funds spread equally among the securities listed on the market.
Required: Advise your Uncle’s Portfolio risk (beta coefficient).
Answer
The portfolio risk (beta coefficient) can be calculated as follows:
- Tags: Beta coefficient, Portfolio risk, Stock market investment, Treasury bills
- Level: Level 3
- Topic: Treasury and Advanced Risk Management Techniques
- Series: NOV 2017
- Uploader: Dotse