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Question 1 The table below displays returns associated with a company's shares over the last 15...

Question 1

The table below displays returns associated with a company's shares over the last 15 years.

Year Return
(% pa)
2004 19
2005 12
2006 17
2007 10
2008 32
Year Return
(% pa)
2009 14
2010 4
2011 4
2012 30
2013 15
Year Return
(% pa)
2014 26
2015 2
2016 10
2017 3
2018 28

Based on this historic data, calculate the expected return on the shares and its standard deviation. Give your answers as a percentage per annum to 2 decimal places.

a)Expected return =  % pa

b)Standard deviation =  % pa

Question 2

The Jupiter superannuation trust manages the following funds, each with a specific objective. Rank these funds in the order of their risk so that 1 is the lowest risk fund and 5 is the highest risk fund.

Fund name Fund objective Risk ranking
Australian shares fund aims to provide access to capital growth and dividends through investment in the Australian share market
Money market fund aims to provide a high level of capital security
Moderate growth fund aims to provide a moderate level of capital growth over the long term through a diversified portfolio
Global shares fund aims to provide medium to long term capital growth from investment in overseas share markets
Property securities fund aims to provide a diversified portfolio of property investments for long term capital growth
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