(i) Portfolio 1: 10% property / 70% shares / 20% bonds
(ii) Portfolio 2: 20% property / 65% shares / 15% bonds
b) Based on the portfolio return and portfolio risk calculated in (a), assess the risk-adjusted performance for Portfolio 1 and Portfolio 2 using the following measures:
(i) Risk-to-return ratio
(iii) Sharpe ratio, if the risk-free asset has an average annual return of 1.3%
c) Based on the analysis in (b), how has the change in property allocation impacted the portfolios’ risk-adjusted performance?
b) Based on the discount rate calculated in (a) and by assuming the terminal capitalisation rate is at 1% lower than the discount rate, determine the fair value for both REITs in 2020.
(ii) Identify and justify the property portfolio that you would recommend to this superannuation fund.
- Assignment status: Already Solved By Our Experts
- (USA, AUS, UK & CA PhD. Writers)
- CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS