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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.
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)
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