(a) Zahmad owns RM10,000 of Cosla stock that has a beta of 3.3. He also owns RM15,000 of Glorious with beta of 1.7) and RM5,000 of Starbook which has the same beta as the market. Assume that the market return will be 11.5 percent and the risk-free rate is 4.5 percent. Calculate the following: (i) Market risk premium. (2 marks) (ii) Risk premium of each stock. (3 marks) (iii) Risk premium of the porffolio. (5 marks) (iv) Expected return of the portfolio. (2 marks) (b) Consider an asset that provides the same return no matter what economic state occurs. What would be the standard deviation (risk) of this asset? Explain. (3 marks) (c) Golden Triangle Holdings Bhd has issued preferred stock with an annual dividend of RM0.75 that will be paid in perpetuity. Currently, the stock is traded at a price of RM7 50 . (i) If the discount rate is 8 percent at what price should the preferred stock sell? [2 marks] (ii) What is the expected rate of return of the stock? [2 marks] (iii) Assume that you have a required rate of return of 9.5 percent. should you purchase the stock? [1 marks]