Financial Insights and Business Intelligence Assignment no. 3

Description1 Provide critical insight into the finance functions of an organisation2 Undertake appropriate financial analysis and propose strategic recommendations on capital structures, valuation and investment alternatives.3 Identify appropriate techniques to gain financial insights and business intelligence in the big data age.4 Critically evaluate the financial performance of an organisation.In the London Stock Exchange (LSE), the common stocks of Google (G) and Apple (A) are recorded historically below. YearGoogleStock ReturnAppleStock Return20125%4%20136%5%20146%6%20157%5%20167%9%20178%8%20188%7%20196%2%20207%6%20215%9% Required tasks: As a capital-budgeting manager at LSE, you are required to calculate the following tasks for advising your client: 1) Estimate the average rate of return of each stock individually. (5%)2) If your client invested in a stock portfolio comprising 30% of Google common stocks and 70% of Apple common stocks, what would have been the rate of return on the asset portfolio each year? (10%)3) What would have been the average return on the portfolio during the period from 2012 to 2021? (10%)4) Estimate the individual risk of each stock. (5%)5) Calculate the risk for the asset portfolio of both common stocks taken together. (10%)6) What is the coefficient correlation between the returns of the two common stocks? (10%)7) Critically discuss the modern portfolio theory, which was pioneered by Harry Markowitz, in relation to the above findings and the systematic and unsystematic risk. Advise your client accordingly in laymans terms on the profitability of your clients asset portfolio. Hint: you are required to write longer answers with complete references (50%)