Financial Case Study;Client: Financial Theory and Markets: we Consider the following securities; Ford Motor Company (F), the Coca-Cola company (KO) the 10-year US Treasury and Cash (as proxied as 3-mth US T Bill return) (i.

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Client: Financial Theory and Markets: we Consider the following securities; Ford Motor Company (F), the Coca-Cola company (KO) the 10-year US Treasury and Cash (as proxied as 3-mth US T Bill return) (i.) Describe and discuss the risk return characteristics of each asset, this section should be driven by data analysis. Minimum 10 years data, more is preferable. (ii.) Calculate the beta of Ford and the beta of Coca-Cola and explain how this term should be interpreted by investors. (iii.) If each stock was owned in a portfolio with the 10-year US Treasury Bond – ie a 2-stock portfolio comprising an equity and a bond asset what would the risk return characteristics of those portfolios? Discuss. (iv.) Which one of those two risky asset portfolios would you recommend for a risk averse investor? Explain. (v.) What would be the risk return characteristics of these assets held as complete portfolios, eg: Ford, 10yr T Bond and Cash and also Coca-Cola, 10-yr T Bond and Cash? (vi.) Which of the portfolios described under (v.) above would you recommend for a risk averse investor? Explain