CASE DATA AND INFORMATION:

DATE Lyxor Chinah Lyxor MSIndia

2009 2% 5.86%
2010 4.25% 22.40%
2011 -29.40% -27.07%
2012 13.23% 0.60%
2013 8.86% -6.84%
2014 2.31% 33.87%
2015 -2.96% -9.28%

Expected Returns and Risks:

Lyxor ChinaH

DATE X (X-) (X-)^2

2009 2% 2.2443% 0.0504%
2010 4.25% 4.4943% 0.2020%
2011 -29.40% -29.1557% 8.5006%
2012 13.23% 13.4743% 1.8156%
2013 8.86% 9.1043% 0.8289%
2014 2.31% 2.5543% 0.0652%
2015 -2.96% -2.7157% 0.0738%
1.923%
X bar -0.24%
SD

Lyxor USDJIA

DATE X (X-) (X-)^2

2009 5.56% -3.651% 0.133%
2010 6.11% -3.101% 0.096%
2011 7.94% -1.271% 0.016%
2012 18.29% 9.079% 0.824%
2013 17.09% 7.879% 0.621%
2014 14.20% 4.989% 0.249%
2015 -4.71% -13.921% 1.938%
0.646%
X bar 9.21%
SD

Portfolio Returns
 Existing Portfolio New Portfolio
0.970% 3.503%

Portfolio Risks
Existing Portfolio

Covariances of Lyxor ChinaH and Lyxor MSIndia

Lyxor ChinaH Lyxor MSIndia
(X-) (X-) ( X -  ) x (X - )
2.244% 3.069% 0.0689%
4.494% 19.609% 0.8813%
-29.156% -29.861% 8.7063%
13.474% -2.191% -0.2953%
9.104% -9.631% -0.8769%
2.554% 31.079% 0.7938%
-2.716% -12.071% 0.3278%

Covariance 1.6010%

Portfolio SD 8.766%

New Portfolio

Covariances of MSIndia and Lyxor USDJIA

Lyxor MSIndia Lyxor USDJIA
(X-) (X-) ( X -  ) x (X - )
3.069% -3.651% -0.1120%
19.609% -3.101% -0.6081%
-29.861% -1.271% 0.3797%
-2.191% 9.079% -0.1990%
-9.631% 7.879% -0.7588%
31.079% 4.989% 1.5504%
-12.071% -13.921% 1.6805%

Covariance 0.3221%

Portfolio SD 7.39%

BETA (B):

Covariance of Lyxor ChinaH & World

 Lyxor ChinaH Lyxor World
(X-) (X-) ( X -  ) x (X - )
2.244% -0.291% -0.007%
4.494% -2.191% -0.098%
-29.156% -11.261% 3.283%
13.474% 12.769% 1.720%
9.104% 6.159% 0.561%
2.554% 7.079% 0.181%
-2.716% -12.261% 0.333%

Covariance 0.9955%

Covariance of Lyxor MSIndia & World

Lyxor MSIndia Lyxor World

(X-) (X-) ( X -  ) x (X - )
3.069% -0.291% -0.009%
19.609% -2.191% -0.430%
-29.861% -11.261% 3.363%
-2.191% 12.769% -0.280%
-9.631% 6.159% -0.593%
31.079% 7.079% 2.200%
-12.071% -12.261% 1.480%

Covariance 0.9552%

Covariance of Lyxor USDJIA & World

Lyxor USDJIA Lyxor World

(X-) (X-) ( X -  ) x (X - )
-3.651% -0.291% 0.011%
-3.101% -2.191% 0.068%
-1.271% -11.261% 0.143%
9.079% 12.769% 1.159%
7.879% 6.159% 0.485%
4.989% 7.079% 0.353%
-13.921% -12.261% 1.707%

Covariance 0.00654380809524

Calculation of BETA:

Lyxor ChinaH Lyxor MSIndia Lyxor USDJIA

Beta 1.1204377 1.07503860024085 0.7364726

 Risk Free Rate 2.50% Market Rate

CAPM

Lyxor ChinaH Lyxor MSIndia Lyxor USDJIA

8.662% 8.413% 6.551%
 Lyxor USDJIA Lyxor World
5.56% 7.69%
6.11% 5.79%
7.94% -3.28% Lyxor ChinaH
18.29% 20.75% Lyxor MSIndia
17.09% 14.14% Lyxor USDJIA
14.20% 15.06%
-4.71% -4.28%

Lyxor MSIndia

X (X-) (X-)^2
5.86% 3.0686% 0.0942%
22.40% 19.6086% 3.8450%
-27.07% -29.8614% 8.9170%
0.60% -2.1914% 0.0480%
-6.84% -9.6314% 0.9276%
33.87% 31.0786% 9.6588%
-9.28% -12.0714% 1.4572%
4.158%
X bar 2.79%
SD

Lyxor World

X (X-) (X-)^2
7.69% -0.291% 0.001%
5.79% -2.191% 0.048%
-3.28% -11.261% 1.268%
20.75% 12.769% 1.630%
14.14% 6.159% 0.379%
15.06% 7.079% 0.501%
-4.28% -12.261% 1.503%
0.889%
X bar 7.98%
SD
Covariances of Lyxor ChinaH and Lyxor USDJIA
Lyxor ChinaH Lyxor USDJIA
(X-) (X-) ( X -  ) x (X - )
2.244% -3.651% -0.082%
4.494% -3.101% -0.139%
-29.156% -1.271% 0.371%
13.474% 9.079% 1.223%
9.104% 7.879% 0.717%
2.554% 4.989% 0.127%
-2.716% -13.921% 0.378%

Covariance 0.4326%
5.50% Rm 8.00%
Existing Portfolio New Portfolio
60% 40%
40% 30%
30%