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Lim has RM80,000 on hand and he is going to invest this amount in two stocks, namely 7E and 7A. The information tabulated below showed the performance of return for both stocks at three states of economy. Possibilities of Probability of Economy Excellent Neutral 7E Rate of Return (%) 100 50 20 7A Rate of Return (%) 50 Оссurrence 0.30 0.40 25 Рoor 0.30 10

Lim has RM80,000 on hand and he is going to invest this amount in two stocks, namely 7E and 7A. The information tabulated below showed the performance of return for both stocks at three states of economy. Possibilities of Probability of Economy Excellent Neutral 7E Rate of Return (%) 100 50 20 7A Rate of Return (%) 50 Оссurrence 0.30 0.40 25 Рoor 0.30 10

Essentials Of Investments
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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hi there tutors! im here to cure my doubts.

i hv a few subs to ask. please help solve.

fundamentals of finance

state fornula needed for each then Calculate:

  • the portfolio expected return
  • the portfolio covariance
  • the portfolio standard deviation

thats all. tutor, i hope for correct & precise calculations. thank you!

Lim has RM80,000 on hand and he is going to invest this amount in two stocks, namely 7E and 7A. The information tabulated below showed the performance of retun for both stocks at three states of economy. Possibilities of Probability of Economy Excellent 7E 7A Оссurrence Rate of Return (%) Rate of Return (%) 0.30 100 50 Neutral 0.40 50 25 Рor 0.30 20 10
Transcribed Image Text:Lim has RM80,000 on hand and he is going to invest this amount in two stocks, namely 7E and 7A. The information tabulated below showed the performance of retun for both stocks at three states of economy. Possibilities of Probability of Economy Excellent 7E 7A Оссurrence Rate of Return (%) Rate of Return (%) 0.30 100 50 Neutral 0.40 50 25 Рor 0.30 20 10
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