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(a) (b) Mr.Shahrul Affendy had been appointed to lead the finance team of Extreme Broadband Corporation. The team is required to advise the board
(a) (b) Mr.Shahrul Affendy had been appointed to lead the finance team of Extreme Broadband Corporation. The team is required to advise the board on the investment that should be undertaken. The annual historical share prices for Maxis and Telekom Malaysia Berhad (TLMM) are as follows: Date 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019 As the leader for finance team, he is required to suggest on the preferable company to be invested based on the coefficient of variation for Maxis and Telekom Malaysia Berhad (TLMM). i. (5 marks) 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. ii. Share A B C Maxis (RM) 5.32 5.35 6.01 5.98 6.80 D E Market portfolio T-Bills Return (%) 12.65 7.48 15.25 6.30 18.16 10.0 4.0 TLMM (RM) 3.82 2.66 6.30 5.95 6.78 Expected return on portfolio. Standard Deviation (%) 6.02 4.32 5.25 Assume the portfolio is equally weighted. Based on the information given, calculate: 3.75 5.69 3.50 Required rate of return for this portfolio. Beta 1.05 0.60 1.50 0.55 2.00 1.00
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