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(b) The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: [Soalan soalan yang berikut.adalah berdasarkan maklunat yang diberikan darinada iadual taburan &ebarangkalian pulangau nelakuran saham indovidu, dan portfolio di bawah ] Table 3: Probability distributions of returns on investment for individual shares and portfolio. | Jadual 3: TabuTan kebarangkalian dan pengagihan pulangan pelabuKan bagi saham individu dan portfolio. State of Economy Probability of the States Return on Share A (TA) Return on Share B (TB) Return on Portfolio AB (E) 0.20 0.20 0.20 0.20 0.20 15% -5% 5% 35% 25% -5% 15% 25% 5% 35% 5% 5% 15% 20% 30% 12345

(b) The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: [Soalan soalan yang berikut.adalah berdasarkan maklunat yang diberikan darinada iadual taburan &ebarangkalian pulangau nelakuran saham indovidu, dan portfolio di bawah ] Table 3: Probability distributions of returns on investment for individual shares and portfolio. | Jadual 3: TabuTan kebarangkalian dan pengagihan pulangan pelabuKan bagi saham individu dan portfolio. State of Economy Probability of the States Return on Share A (TA) Return on Share B (TB) Return on Portfolio AB (E) 0.20 0.20 0.20 0.20 0.20 15% -5% 5% 35% 25% -5% 15% 25% 5% 35% 5% 5% 15% 20% 30% 12345

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Given:

Expected return Share A(ȓA)  =15%

Expected return Share B (ȓB)  = 15%

Expected return Portfolio A and B (ȓAB)  =  15%

 

By using the above information, demonstrate the rate of risk (variance and standard deviation) for each of:

(i)     Share A

(ii)    Share B

(iii)   Portfolio A and B

(b) The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: [Soalan sealanyang berikut.adalah berdasarkan maklunat yang diberikan darinada iadual taburan kebarangkalian pulangan nelaburan saham individu dan portfolio di bawah ] Table 3: Probability distributions of returns on investment for individual shares and portfolio. | Jadual 3. Taburan kebarangkalian dan pengagihan pulangan pelaburan bagi sabam individu dan portfolio.) State of Economy Probability of the States Return on Share A (TA) Return on Share B (TB) Return on Portfolio AB (E) 0.20 0.20 0.20 0.20 0.20 15% -5% 5% 35% 25% -5% 15% 25% 5% 35% 5% 5% 15% 20% 30% ....5/- SULIT -2345
Transcribed Image Text:(b) The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: [Soalan sealanyang berikut.adalah berdasarkan maklunat yang diberikan darinada iadual taburan kebarangkalian pulangan nelaburan saham individu dan portfolio di bawah ] Table 3: Probability distributions of returns on investment for individual shares and portfolio. | Jadual 3. Taburan kebarangkalian dan pengagihan pulangan pelaburan bagi sabam individu dan portfolio.) State of Economy Probability of the States Return on Share A (TA) Return on Share B (TB) Return on Portfolio AB (E) 0.20 0.20 0.20 0.20 0.20 15% -5% 5% 35% 25% -5% 15% 25% 5% 35% 5% 5% 15% 20% 30% ....5/- SULIT -2345
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