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Assuming an investor is willing to spend 10,000 in the portfolio A&B , calculate expected total dividend gain. PORTFOLIO RETURN IS 13.6% AND PORTFOLIO RISK

Assuming an investor is willing to spend 10,000 in the portfolio A&B , calculate expected total dividend gain. PORTFOLIO RETURN IS 13.6% AND PORTFOLIO RISK IS 0.

Weightage : Wa : 60%, Wb 40%.

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Price per unit (RM) 3.00 Expected dividend per share at the end of the year (RM) 1.00 Expected return 12% Standard deviation 4% Stock A Stock B 5.00 0.50 16% 6% Stock C 10.00 2.00 18% 11% Correlation coefficients: Stock A Stock B Stock C -1 1 Stock A Stock B Stock C -1 0.5 1 0.5

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