Calculate the following for your company and provide the screenshot of your answers if you use excel: Real Estate Asset Management Assignment, UOM, UK

University University of Manchester(UoM)
Subject Real Estate Asset Management

Question 1

The adjusted Closing price for AppleIncis provide in the following table

Calculate the following for your company and provide the screenshot of your answers if you use excel. If you use a calculator please show all your calculations:

Calculate the Holding Period Returns for 2019,2020 and 2021.

Calculate the Annual Standard Deviations for 2019,2020 and 2021.

  1. AssuminganannualRisk-FreeRateof1.5%,whatwastheRiskPremiumforeachofthethreeyears?
  2. WhatwastheSharpeRatio ineach of the three years?
  3. Calculate and explain the results of your allocated company’s Capital AllocationLineoverthefull3-year period.

Question 2

The T-billrateis 3.5% and the market risk premiumis 8%.

What would be the fair return for each company according to the capital asset pricing model (CAPM)?

Jony Depp, a fund manager at Fidelity McGillan fund, is using the capital asset pricing model for making recommendations to his clients. He has produced the information shown in the following exhibit.

Identify and justify which stock would be more appropriate for an investor who wants stood his Stockton a well-diversified equity portfolio. Which stock would be more appropriate for a single-stock portfolio? Explain your answers.

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