1. Mr. Kajal and Mr. Rajib are two friends who are studying BBA in a reputed university. Both of them decide that they will investment in stock market with the money earned from private tutoring. Mr. Kajal buys one stock with his capital. On the other hand, Mr. Rajib bought seven stocks with his capital.

a. Which principle/technique did Mr. Rajib follow in investing? Describe.

b. In stock market investment, which investment by which person do you think to be more logical? Give your opinion with analysis.

1. Schembri Investment Company Limited wishes to assess the impact of changes in the market return on an asset that has a beta of 0.8. For the asset return to increase by 33%, by how much the market return needs to increase?