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Please answer Question 3 (b) thank you. 11 marks Paragraph Styles QUESTION 3 (25 MARKS) You wish to estimate graphically the scatter points for the
Please answer Question 3 (b) thank you. 11 marks
Paragraph Styles QUESTION 3 (25 MARKS) You wish to estimate graphically the scatter points for the shares of TOP GLOW BERHAD (TGLOW) and PETRA BERHAD (PETR). It has gathered the return data shown in the following table for the market and over the last 5 years, 2016-2020. You have the following information about the returns for the shares of TGLOW and the PETR: YEAR (TIME) TGLOW (%) PETR (%) 2016 (1) 15.65 8.65 2017 (2) 18.25 9.55 2018 (3) 17.40 6.95 2019 (4) 21.75 10.50 2020 (5) 22.60 12.15 a) On a set of "PETR (x axis) TGLOW (y axis)" axes, use the data given to draw the scatter points. (4 marks) b) Calculate the expected return, variance and standard deviation for the stocks. (11 marks) c) Use the data below, estimate the expected return for your portfolio if the correlation of coefficient between the two stock is 0.8316. (4 Marks) INVESTMENT VALUE TGLOW = RM100,000 PETR = RM105,000 d) Based on risk proxies, comment on TGLOW, PETR and portfolio performance. (6 marks)Step by Step Solution
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