Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 9MC
Related questions
Question
g) Based on the findings above, which alternatives is the best for Aisyah to choose? Justify your answer.
![QUESTION 4: RISK & RETURN
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
80% of Astro and 20% of Media Prima
2
40% of Media Prima and 60% of Astro](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff601ce3a-be80-413c-a6fa-fe50352f4cf2%2F4c0b6376-4884-4dad-abdd-a793a3338089%2F6w4v95u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 4: RISK & RETURN
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
80% of Astro and 20% of Media Prima
2
40% of Media Prima and 60% of Astro
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