- 2 Marks
AFM – Nov 2017 – L3 – Q1c – Treasury and Advanced Risk Management Techniques
Calculating the portfolio risk (beta coefficient) for a combined investment in government securities and the stock market.
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).
Find Related Questions by Tags, levels, etc.
- Tags: Beta coefficient, Portfolio risk, Stock market investment, Treasury bills
- Level: Level 3
- Topic: Treasury and Advanced Risk Management Techniques
- Series: NOV 2017
