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Azimah works as an investment analyst for Permodalan Nasional Berhad (PNB). Currently, she is evaluating five shares and has to report to her manager
Azimah works as an investment analyst for Permodalan Nasional Berhad (PNB). Currently, she is evaluating five shares and has to report to her manager on the performance of the shares. Below is the respective information on the shares. ABCD Share Return (%) Standard Deviation (%) Beta E 6.30 18.16 10.0 1.05 0.60 1.50 Market portfolio 4.0 0.55 2.00 1.00 T-Bills 6.02 4.32 5.25 12.65 7.48 15.25 3.75 5.69 3.50 Assume the portfolio is equally weighted. Based on the information given, calculate: i. Expected return on portfolio (3 marks) a. Required rate of return for this portfolio. (4 marks)
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