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q3 plsss help me with any of these wered Question 3 (20 marks) Ti ked out of 30 (a) Consider a portfolio of four stocks

q3 plsss help me with any of theseimage text in transcribed

wered Question 3 (20 marks) Ti ked out of 30 (a) Consider a portfolio of four stocks as displayed in the following table: Stock Mastulin Masjati Masasli Maspadu Weight 0.1 0.2 0.3 0.4 Beta 1.3 -0.6 Bx 1.1 Assume the expected return of the portfolio is 0.12, the annual effective risk-free rate is 0.06, and the market risk premium is 0.08. Assuming the Capital Asset Pricing Model (CAPM) holds, calculate Bx [9 marks] (b) Seri Iskandar Corporation's common stock is currently selling for RM40 per share and there are 1.000.000 shares and 20,000 bonds outstanding, which are selling at 107 percent of par. If the firm was considering an active change to their capital structure so that the firm would have a debt to equity ratio of 1.5, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell? [8 marks] (c) How can standard deviation, a statistical measure of dispersion be used in investment analysis? [3 marks] 1 A- B I %

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