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PeroDua Berhad is considering the following information: State of economy Probability of state of economy Stock's Rate of Return if State Occurs (%) Kancil Kenari

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PeroDua Berhad is considering the following information: State of economy Probability of state of economy Stock's Rate of Return if State Occurs (%) Kancil Kenari Kelisa Keladi Berhad Berhad Berhad Berhad Boom Bust 35% 65% 7 13 15 3 33 -6 40 10 a. From the above information you are required to answer the questions below. Calculate the expected rate of return for each stock. (4 Marks) b. PeroDua Berhad's plan is to invest equally for these four stocks. Calculate the expected return of return of the portfolio. (4 Marks) C. Based on the calculation in part (a) and (b), advise PeroDua Berhad on expected rate of return on individual stock compared to portfolio. (2 Marks) (Total: 10 Marks) lenovo

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