(ii) Advise on the changes to be made if you would like to rebalance your portfolio according to the following weightings: Security A B Weighting 30 20 20 D 15 E 15 (i11) Assume that the capital...


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(ii)<br>Advise on the changes to be made if you would like to rebalance your portfolio<br>according to the following weightings:<br>Security<br>A<br>B<br>Weighting<br>30<br>20<br>20<br>D<br>15<br>E<br>15<br>(i11)<br>Assume that the capital market line is as follows:<br>4,00 + 13,58<br>Comment on whether each of the securities is overvalued or undervalued if returns of<br>the securities are as follows:<br>Security<br>Return<br>20<br>A<br>B<br>20<br>C<br>50<br>D<br>E<br>25<br>31<br>

Extracted text: (ii) Advise on the changes to be made if you would like to rebalance your portfolio according to the following weightings: Security A B Weighting 30 20 20 D 15 E 15 (i11) Assume that the capital market line is as follows: 4,00 + 13,58 Comment on whether each of the securities is overvalued or undervalued if returns of the securities are as follows: Security Return 20 A B 20 C 50 D E 25 31
(b)<br>A portfolio consists of securities as follows:<br>Average buying Current market<br>price (RM)<br>4.00<br>8.00<br>1.20<br>Security<br>Beta<br>Units<br>1.3<br>1.2<br>price (RM)<br>4.80<br>9.60<br>30,000<br>10,000<br>80,000<br>200,000<br>150,000<br>A<br>1.3<br>3.20<br>0.50<br>0.20<br>D<br>1.5<br>0.30<br>E<br>1.6<br>0.10<br>Required:<br>Calculate the profit/loss (in RM) for the portfolio above.<br>

Extracted text: (b) A portfolio consists of securities as follows: Average buying Current market price (RM) 4.00 8.00 1.20 Security Beta Units 1.3 1.2 price (RM) 4.80 9.60 30,000 10,000 80,000 200,000 150,000 A 1.3 3.20 0.50 0.20 D 1.5 0.30 E 1.6 0.10 Required: Calculate the profit/loss (in RM) for the portfolio above.

Jun 11, 2022
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