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anwer for b pls Question2 Consider the following information on Stock Melati Berhad and Stock Anggerik Berhad Rate of return if state occurs State of
anwer for b pls
Question2 Consider the following information on Stock Melati Berhad and Stock Anggerik Berhad Rate of return if state occurs State of economy Probability of state of economy Stock Stock Melati Berhad Anggerik Berhad Boom 0.25 11% (40)% Normal 0.50 29 10 Bust 0.25 13 56 The market risk premium is 8%, and the risk-free rate is 4%. From the above information you are required to answer the following questions: (3 Marks) a. Which stock has the most systematic risk? Explain your answer. b. Which stock has the most unsystematic risk? Explain your answer. (3 Marks) Which stock is riskier? Explain your answer. (4 Marks) C Step by Step Solution
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