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(b) Amirra has received RM16,350 as a year-end bonus for her achievement. Thus, she decided to invest in basket of portfolio as her investment alternative.
(b) Amirra has received RM16,350 as a year-end bonus for her achievement. Thus, she decided to invest in basket of portfolio as her investment alternative. Below are the information related to her investment: Share Price per Beta Unit of investment 500 unit Return (%) 7.50 AZRB RM4.50 0.70 Axiaz 2,000 RM2.25 10.30 1.10 Padin 4,000 RM1.80 12.50 0.95 Borneo 2,000 RM1.50 3.50 1.00 Calculate: i. the expected return portfolio and beta portfolio. (15 marks) ii. the required rate of return by using Capital Asset Pricing Model (CAPM) if the risk free rate is 3.08 percent and the market return is 12 percent. (4 marks)
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