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Assume that you have opportunity to invest BD 25,000 in one of the following common stock. Year Stock (A) Stock (B) 2019 12% 9% 2018
Assume that you have opportunity to invest BD 25,000 in one of the following common stock. Year Stock (A) Stock (B) 2019 12% 9% 2018 15% 13% 2017 18% 17% 2016 21% 21% Then you plan to invest in both stocks (A and B) as a portfolio investment and the weight of investment will be as follow: Stock B Weight 55% 45% Correlation 1 Required: a. Calculate the expected return for both stock b. Calculate the expected risk based on standard deviation for both stock Calculate the expected risk based on coefficient variation (CV) d. Interpret which stock that you would like to invest based on risk and return concept Calculate the expected return of portfolio f. Calculate the expected risk of portfolio based on standard deviation Dell Update 8 updates are Install
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