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
Related questions
Question
c) Calculate the covariance for the above stock
Note: No need excel formula
Transcribed Image Text:QUESTION 2
Aisyah, a new investor cannot decide whether to invest in Stock Media Prima or Stock Astro,
or in a portfolio which is a combination of both stocks. She has approached RHB securities and
the firm has provided her with the following information.
Probability (%)
Expected return (%)
Stock Media Prima
Stock Astro
30
13
15
20
14
13
20
15
12
30
16
11
Using these stocks, she has identified two investment portfolio alternatives:
Alternatives
Portfolio
1
100% Stock Media Prima
2
40% of Media Prima and 60% of Astro
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