You are currently working as an analyst at Financial Consulting Bhd$.$ Your boss has

instructed you to form an equity fund portfolio which consists of two telecommunication

companies, namely, Telekom Malaysia Berhad $($TM$4863)8$ Maxis Berhad $($Maxis

$.$ The porffolios have a batal fund size of RM$100$ milion. Before you can start with

your analysis, you have to collect monthly stock prices of each stock in your portfolio over

the last $12$ months. $($Hint: The selected companies should be listed in Bursa

Malaysia$)$

You are required to:

$($a$)$ Describe the background $($operation$,$ management team, market etc$)$ of the

companies.

$(10$ marks$)$

$($b$)$ Compute the monthly stock retum of each stock in your portfolio in each of the last

$12$ months. Show your answers in organized tabular format.

Based on a review of the retum data, decide which investment appears to be riskier.

$(20$ marks$)$

$($c$)$ Compute and comment on the average monthly stock return and standard

deviation of retums of each stock over the last $12$ months.

$(20$ marks$)$

$($d$)$ Compule and comment on the covariance and correlation between each possible

pair of stocks in your portfolio.

$(20$ marks$)$

$($e$)$ Compule and comment on the portfolio's rebum and standard deviation assuming

funds are split equally in each of the two companies' stocks.

$(10$ marks$)$

$($f$)$ Recommend which you will invest stock separalely or combine $($portfolio$)$ on the

above calculation.

$(10$ marks$)$

$($g$)$ Writing skills, citation of references and sources of information

$(10$ marks$)$