Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 Kenanga Berhad is a company that has diversified into five different ways of investments, Kenanga Berhad's objectives are to reduce risk through diversifications.

image text in transcribed

Question 2 Kenanga Berhad is a company that has diversified into five different ways of investments, Kenanga Berhad's objectives are to reduce risk through diversifications. The estimated investments (in RM) and expected rate of return are shown below: Beta Investment s or bird weight dulu Amount invested (in RM) Expected rate of return (%) 14 16 12 9 22 30,000 25,000 20,000 15,000 10,000 = 100 000 1 2 3 4 5 0.8 1.1 0.7 0.4 1.6 101. From the above Information you are required to answer the questions below. a Compute the expected rate of return for this portfolio (4 Marks) b. Compute the beta for this portfolio (2 Marks) c. Based on your answer in part (a) interpret your answer compared to the expected rate of return on individual investments ep v E) (2 Marks) d. Based on your answer in part (b): interpret your answer compared to the beta on individual investments (2 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Monetary Policy And Public Finance

Authors: G. C. Hockley

1st Edition

1138704792, 978-1138704794

More Books

Students also viewed these Finance questions

Question

Define promotion.

Answered: 1 week ago

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago

Question

List the different categories of international employees. page 642

Answered: 1 week ago

Question

Explain the legal environments impact on labor relations. page 590

Answered: 1 week ago