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Question 1 You are considering to invest in both Suria Berhad and Mentari Berhad. The information about the shares of Suria and Mentari under different

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Question 1 You are considering to invest in both Suria Berhad and Mentari Berhad. The information about the shares of Suria and Mentari under different economic circumstances are as follows: Economic Scenario Probability (%) Decline Growth Boom 20 50 30 Return (%) Suria Mentari -20 -15 18 20 50 10 Based on the above information, you are required to: a. determine the expected rate of return (f) for both firms. (4 Marks) b. determine the standard deviation (C) for both firms. (4 Marks) C. Assume that you have RM10,000 in hand and plan to construct a portfolio of RM9,000 in Suria and the rest will go to Mentari. What will be the expected retum () of your portfolio? (2 Marks) (Total: 10 Marks)

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