Calculate the and standard deviation for each alternative 7. Based on the findings above, which alternatives is the best for Aisyah to choose? Justify your answer.

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
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6. Calculate the and standard deviation for each alternative 7. Based on the findings above, which alternatives is the best for Aisyah to choose? Justify your answer.
Using these stocks, she has identified two investment portfolio alternatives:
Alternatives
Portfolio
1
80% of Astro and 20% of Media Prima
2
40% of Media Prima and 60% of Astro
Transcribed Image Text:Using these stocks, she has identified two investment portfolio alternatives: Alternatives Portfolio 1 80% of Astro and 20% of Media Prima 2 40% of Media Prima and 60% of Astro
QUESTION 3
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
Transcribed Image Text:QUESTION 3 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
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