QUESTION 2 (a,b) 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 1 100% Stock Media Prima 2 40% of Media Prima and 60% of Astro a) Calculate the expected return for Stock Media Prima and Stock Astrob) Calculate the standard deviation for Stock Media Prima and Stock Astro

QUESTION 2 (a,b) 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...

QUESTION 2 (a,b)

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	100% Stock Media Prima
2	40% of Media Prima and 60% of Astro

a) Calculate the expected return for Stock Media Prima and Stock Astro

b) Calculate the standard deviation for Stock Media Prima and Stock Astro

Jun 08, 2022

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QUESTION 2 (a,b) 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...

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