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Question 3 - Show your working. Permata's Corporation is considering investing in Malaysian security market. The company need to choose only one from the two
Question 3 - Show your working. Permata's Corporation is considering investing in Malaysian security market. The company need to choose only one from the two securities listed below. The return are as follows: Return Probability 30% 30% 40% Security K 15% 10% 6% Security H 12% 10% 8% Based on the above information, you are required to: a. calculate the expected rate of return for each security. (2 Marks) b. calculate the standard deviation of return for each security. (4 Marks) justify the most preferred security based on your calculation in part (a) and (b). (4 Marks) C. (Total: 10 Marks)
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