Task a)Calculate the covariance between Share JAY and KAY returns.
b)What is the expected return and standard deviation of returns on a portfolio comprising 35% in Share JAY and 65% in Share KAY?
c)If you wanted to create a portfolio consisting only of these two shares, how much would you need to invest (weights) in each share so that your portfolio return would be equal to 15.6%? Note: do not round.
d)Using the weights calculated in part c), calculate the variance and standard deviation of your portfolio.
Question 2: Bond valuation
Jasmine Ltd is considering issuing bonds to raise funds for a new project. The following three options are being considered.
Bond Coupon Rate Coupon/Compounding FrequencyYield Term in years Face Value
a)Calculate the market price of each bond.
b)Classify each bond as either selling at a premium, par or discount.
c)Assume Jasmine has decided to issue only B Bonds. If Jasmine Ltd needs to raise $465,260 how many bonds would need to be issued?