QUESTION 2 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...

d) Is the combination of the above stock can be considered as an optimum diversification?
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QUESTION 2<br>Aisyah, a new investor cannot decide whether to invest in Stock Media Prima or Stock Astro,<br>or in a portfolio which is a combination of both stocks. She has approached RHB securities and<br>the firm has provided her with the following information.<br>Probability (%)<br>Expected return (%)<br>Stock Media Prima<br>Stock Astro<br>30<br>13<br>15<br>20<br>14<br>13<br>20<br>15<br>12<br>30<br>16<br>11<br>Using these stocks, she has identified two investment portfolio alternatives:<br>Alternatives<br>Portfolio<br>1<br>100% Stock Media Prima<br>2<br>40% of Media Prima and 60% of Astro<br>

Extracted text: QUESTION 2 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

Jun 08, 2022

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QUESTION 2 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...

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