Explain the main objective of corporate finance. b) Guest Berhad has pension liablity of RM 800 million that must be paid in 20 years. If the company discount rate is 8.2%, what is the current value of the liability? c) What are the portfolio weights for a portfolio that has 180 shares of Stock A that sell for RM45 per share and 140 shares of Stock B that sell for RM27 per share? d) You have RM10,000 to invest in a stock portfolio. Your choices are stock X with an expected return of 14% and Stock Y with an expected return of 10.5%. If your goal is to create portfolio with an expected return of 12.4%,
Explain the main objective of corporate finance. b) Guest Berhad has pension liablity of RM 800 million that must be paid in 20 years. If the company discount rate is 8.2%, what is the current value of the liability? c) What are the portfolio weights for a portfolio that has 180 shares of Stock A that sell for RM45 per share and 140 shares of Stock B that sell for RM27 per share? d) You have RM10,000 to invest in a stock portfolio. Your choices are stock X with an expected return of 14% and Stock Y with an expected return of 10.5%. If your goal is to create portfolio with an expected return of 12.4%,
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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Explain the main objective of
b) Guest Berhad has pension liablity of RM 800 million that must be paid in 20
years. If the company discount rate is 8.2%, what is the current value of the liability?
c) What are the portfolio weights for a portfolio that has 180 shares of Stock A that sell for RM45 per share and 140 shares of Stock B that sell for RM27 per share?
d) You have RM10,000 to invest in a stock portfolio. Your choices are stock X with an expected return of 14% and Stock Y with an expected return of 10.5%. If your
goal is to create portfolio with an expected return of 12.4%,
i. how much money will you invest in X?
ii. how much money will you invest in Y?
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