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You are thinking about investing your money of RM10,000 in the Malaysian stock market. You have the following three stocks in mind: stock AAsia, BAsia,
You are thinking about investing your money of RM10,000 in the Malaysian stock market. You have the following three stocks in mind: stock AAsia, BAsia, and CAsia. You also know the following about the THREE (3) potential stocks: You are well noted with the expected return of FTSE Bursa Malaysia KLCI (FBMKLCI) is 18% and currently the Malaysian Treasury bill rate is 1%. You intend to invest in only TWO (2) of the above stocks with different capital allocation. Calculate the expected returns and standard deviations of the following portfolios which consist of different proportion of the portfolio invested in Stock AAsia, Stock BAsia and Stock CAsia. \begin{tabular}{|c|c|c|c|} \hline Portfolio & \multicolumn{3}{|c|}{ Proportion (\%) } \\ \hline & Stock AAsia & Stock BAsia & Stock CAsia \\ \hline X & 80 & 20 & \\ \hline Y & 30 & & 70 \\ \hline Z & & 60 & 40 \\ \hline \end{tabular}
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