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 80% of Astro and 20% of Media Prima 1 40% of Media Prima and 60% of Astro 2.
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 80% of Astro and 20% of Media Prima 1 40% of Media Prima and 60% of Astro 2.
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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e) Calculate the portfolio return for each alternative.
f) Calculate the and standard deviation for each alternative
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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