I have an investments assignment but i am having serious problems. I have been given two shares (prices and dividends) of which i must calculate the following:
1. Calculate the annualised rate of return (EAR) for each share and the portfolio using the log-return approach. Return(t)=(Pt+CF)/Pt-1
2. Calculate the annual volatility for each share and the portfolio.
3. Calculate the Beta for each share and your equity portfolio.
4. Calculate the market risk and specific risk for each share and your portfolio.
5. Estimate the risk premium of your equity portfolio using the historical returns.
6. Calculate the Alpha for your equity portfolio using the CAPM.
7. Construct and draw an efficient frontier with your equity portfolio and the All Bond Index as the two asset classes. (Using 1% incremental in the asset class weights and construct and annotate a graph of the EF.)
8. Find the minimum risk and optimum portfolio of risky assets (Equities & Bonds) using analytical methods. (Constrain to a long only portfolio.)
9. Construct the complete portfolio of risky and risk-free assets for the portfolio with the same risk (volatility) as the minimum risk portfolio. (Constrain to a long only portfolio.)
I am currently on question 3 and i dont know how to calculate the beta for equity portfolio since i havent been given any weights of the portfolio. Someone please help