Siti Aisyah is considering investing in one of the following stocks. The relevant information about the stocks are as follows: b) Siti Aishah is considering investing in one of the following stocks. The relevant informatic about the stocks are as follows: State of the economy Probability of the state Investment return Kekanda Bhd. Adinda Bhd. Bear 0.35 -30% 12% Normal 0.45 18% 18% Bull 0.20 90% 24% 1.00 Based on the information given, answer the follow following questions a) Calculate the expected rate of return for Kekanda and Adinda b) Calculate the standard deviation of return for Kekanda and Adinda c) If Alpha is a risk averse type investor, which stock should she choose and state your reason.

Use the English instructions and solve the questions by using formula.

Suppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Your financial adviser provides you with the following table, which gives the probabilities of possible returns from each investment: Stocks Bonds Commodities Probability Return Probability Return Probability Return 20% 15% 0.15 20% 0.6 10% 0.2 0.2 12.5% 0.4 7.5% 0.2 0.25 0.2 0.4 3.8% 0.2 0.2 0% To maximize your expected return, you should choose O A. commodities. B. bonds. OC. stocks. OD. All of the portfolios have the same expected return

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You plan to invest $1000 in a corporate bond fund or in a common stock fun. The information to the right about the annual return (per $1000) of each of these investments under different economic conditions is available, along with the probability that each of these economic conditions will occur. Complete parts (a) through (c) a. Compute the expected return for the corporate bond fund and for the common stock fund b. Compute the standard deviation for the corporate bond fund and for the common stock fund c. Would you invest in the corporate bond fund or the common stock fund? Explain.

All of the parts are under one question and therfore can be answered per your policy.  8. Portfolio risk and return Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table:   Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 0.90 18.00% Tobotics Inc. (TI) $2,000 1.70 11.00% Three Waters Co. (TWC) $1,500 1.10 18.00% Flitcom Corp. (FC) $3,000 0.60 25.50%   A. Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?   Tobotics Inc.   Three Waters Co.   Flitcom Corp.   Omni Consumer Products Co.     B. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?   Flitcom Corp.   Tobotics Inc.   Omni Consumer Products Co.   Three Waters Co.…

As the chief investment officer for a money management firm specializing in taxable individual investors, you are trying to establish a strategic asset allocation for two different clients. You have established that Ms. A has a risk-tolerance factor of 8, while Mr. B has a risk-tolerance factor of 27. The characteristics for four model portfolios follow: ASSET MIX Bond 93% 75 32 13 Portfolio 1 2 3 4 Stock 7% 25 GB 87 a. Calculate the expected utility of each prospective portfolio for each of the two clients. Do not round intermediate calculations. Round your answers to two decimal places. 1 2 3 Portfolio Ms. A ER 8% 9 10 11 b. Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B? Portfollo-Select-represents the optimal strategic allocation for Ms. A. Portfolio Select is the optimal allocation for Mr. B. c. For Ms. A, what level of risk tolerance would leave her indifferent between having Portfolio 1 or Portfolio 2 as her strategic…

Yessy Enterprise Ltd has prepared the following information regarding two investments under consideration. Based on the risk/return profile, which investment should be accepted? Investment A Investment B Probability Return Probability Return 0.15 8% 0.20 1% 0.35 11% 0.30 8% 0.35 19% 0.30 15% 0.15 -2% 0.20 9% Will you change your recommendation (above) if Yessy Enterprise currently holds a portfolio with only five stocks? Why?

The payoff table below indicates the returns (in RM thousands) of investments in stock, bond and fixed deposit under different economic situations. Type of Investment Stock Bond Fixed Deposit Table 1 Economic Situation Good 150 50 45 Stable 60 40 45 Poor -30 36 45 The probabilities of good, stable and poor economy are 0.3, 0.5 and 0.2, respectively. What is the best investment based on the expected monetary value criterion? Draw a decision tree.

Assume that you have opportunity to invest BD 25,000 in one of the following common stock. Year Stock (A) Stock (B) 2019 12% 9% 2018 15% 13% 2017 18% 17% 2016 21% 21% Then you plan to invest in both stocks (A and B) as a portfolio investment and the weight of investment will be as follow: Stock Weight 55% 45% Correlation Required: a. Calculate the expected return for both stock Calculate the expected risk based on standard deviation for both stock Calculate the expected risk based on coefficient variation (CV) Interpret which stock that you would like to invest based on risk and return concept Calculate the expected return of portfolio Calculate the expected risk of portfolio based on standard deviation b. c. d. e. Dell Update f. 8 updates are Install