Calculate the expected return for Stock media Prima and Stock Astro 2. Calculate the standard deviation for Stock media Prima and Stock Astro 3. Calculate the covariance and correlation of coefficient for the above stock.
Calculate the expected return for Stock media Prima and Stock Astro 2. Calculate the standard deviation for Stock media Prima and Stock Astro 3. Calculate the covariance and correlation of coefficient for the above stock.
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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Question
a. Calculate the expected return for Stock media Prima and Stock Astro
2. Calculate the standard deviation for Stock media Prima and Stock Astro
3. Calculate the covariance and correlation of coefficient for the above stock.
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
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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