Syarikat Pan Dai Berhad has a beta of 0.90, while Syarikat Ra Jin Berhad has a beta of 1.8. The risk-free rate is 6% and the market expected rate of return is 14%. From the information given, you are required to answer the following questions. a. Determine the expected rate of return of Syarikat Pan Dai Berhad. b. Determine the expected rate of return of Syarikat Ra Jin Berhad. (3 Marks) (3 Marks) C. Based on your answer in part (a) and (b), you will find out that Syarikat Ra Jin Berhad's expected rate of return is NOT twice as Syarikat Pan Dai Berhad's expected rate of return. Explain. (4 Marks) Financial Environment: Nominal/Quoted interest rate Risk & Return: FORMULA kk+IP+[DRP+LP+MRP] Expected Return KP1k1+P2k2.........Pnkn Standard Deviation: (k,-k^) Pi The Coefficient of Variation (CV): CV = /k^ The Expected Return on a Portfolio: kp wik 1+ W2k 2+..........+ Wnk n Portfolio Beta: Bp W1b1+w2b2 .......+Wnbn Security market Line = SML = k = Krf + (Km-Krf) k = Krf + (RPM) Question 2 a) Wan Hakim wishes to get married in 6 years, preparing for his marriage he plans to place a RM 25,000 in a savings account paying an annual compound interest of 8% for 3 years, and he then plan to move the money into a savings account that pays a 10% interest compounded semi- annually. Determine how much will his money grow at the end of 6 years. (5 Marks)