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

instructed you to form an equity fund portfalio which consists of two telecommunlcation

companles, namely. Telekom Malaysla Berhad $($TM$48$E$3)$ & Maxis Berhad $($Maxis

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

your analysis, you hawe to collect monthly stock prices of each stock in your portfalio over

the last $12$ manths. $($Hine: The selecred companies should be IIsied in Bursa

Malaysla$)$

You are required to:

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

companies.

$(10$ marks$)$

$($b$)$ Compute the monthly stock return of each stack in your portfolio in each of the JasI

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

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

$(20$ marks$)$

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

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

$(20$ marks$)$

$($d$)$ Compute and comment on the covariance and comelation between each possiale

pair of stocks in your portfolio.

$(20$ marks$)$

$($e$)$ Compute and comment on the portollo's retum and atandard deviaton assuming

funds are spll equally in each of the wo companies' siocks.

$(10$ marks$)$

$($f$)$ Recommend which you will invest stock separately or combine $($portfolio$)$ an the

above calculation.

$(10$ marks$)$

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

$(10$ marks$)$

$[$Total: $100$ marks$]$ TELEKOM MALAYSIA AND MAXIS BERHAD