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(a) What is Investment Risk? (2 marks) (6) What is Risk Premium? (2 marks) (c) You have $1,000,000. You invested this amount of money in
(a) What is Investment Risk? (2 marks) (6) What is Risk Premium? (2 marks) (c) You have $1,000,000. You invested this amount of money in a Portfolio that has three stock types (A, B, and C). The invested amount and expected rate of return of each stock type are shown in the table below. Estimate the Expected Return of the Portfolio. (6 marks) Stock Type Invested amount ($) Expected rate of return (%) A 600,000 10 Answer B 250,000 15 150,000 5
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