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(a) Merlion Group wants to buy share either from Gmax share or Gmin share. Given below, the following risk and return characteristics. Investment Expected

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(a) Merlion Group wants to buy share either from Gmax share or Gmin share. Given below, the following risk and return characteristics. Investment Expected Return (%) Standard Deviation of Expected Returns (%) Gmax Gmin 12.2 8.8 7 5 Advise Merlion Group, which share should Merlion Group choose and justify your reason. (b) Below are Holding Period Yield (HPY) for two company AA Berhad and BB Berhad for five years. Year AA's HPY BB's HPY 2016 8 9 2017 10 11 2018 9 8 2019 11 9 2020 13 9 (5 marks)

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