Question
You have cash, RM100,000 and would like to invest on either a long-, medium-, or short-term basis in the Malaysian stock market. You are required
You have cash, RM100,000 and would like to invest on either a long-, medium-, or short-term basis in the Malaysian stock market.
You are required to answer all the following questions based on this module content outline:
(a) Assume that you have an investment plan that consists of different investment vehicles. You intend to assess the risk and return of the vehicles. Discuss the actions that you would take to assess the risk and return of the investment vehicles.
(b) Many investors, including yourself, believe that there is no efficient market in a company’s shares. Therefore, the share price may not provide investors a reliable indication of value. You know clearly about your investment objective of aiming at capital gains. Given the above statements, provide your holistic views on the measures that you would undertake before investing so that you could profit from price movement.
(c) Assume that you are successful in making investment selections and so constructed a diversified portfolio. You are with high expectation that the portfolio will generate positive income or its value could at least be preserved. Discuss how you manage your portfolio in order to realize your expectation.
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A Answer A person making an investment expects to get some returns from the investment in the future However as future is uncertain the future expected returns too are uncertain Risk is the variabilit...Get Instant Access to Expert-Tailored Solutions
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