Assignment Task
The financial controller of a firm is considering investing surplus funds in international financial assets. The following information is obtained from his internal research department Country.
The financial controller decides to form a portfolio with investments of certain percentage of assets in each country. The weightage of investment in each country is as follows:
Required:
- Compute the expected rate of return of the portfolio.
- Compute the variance of the portfolio.
- Compute the standard deviation of the portfolio.
- Describe the different levels of investor’s risk.
- Differentiate between systematic risk and non-systematic risk.
