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You have BDT 423,000 to invest. You can invest this amount in the following securities individually or as a portfolio. Economy HR Textile AB Bank

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You have BDT 423,000 to invest. You can invest this amount in the following securities individually or as a portfolio. Economy HR Textile AB Bank DSE Good 14% 8% 10% Bad 8 8% - 6% 4% (a) If the economy is declining trend which stock would you prefer and why? (3 marks) (b) If the economy is increasing trend which stock would you prefer and why? (3 marks) (c) If you like to invest 40% in least risky stock then what is your portfolio beta? Comment on the value (2+2 = 4 marks) (d) What is your portfolio return if DSE expects a decline of 20%? (2 marks) You have BDT 423,000 to invest. You can invest this amount in the following securities individually or as a portfolio. Economy HR Textile AB Bank DSE Good 14% 8% 10% Bad 8 8% - 6% 4% (a) If the economy is declining trend which stock would you prefer and why? (3 marks) (b) If the economy is increasing trend which stock would you prefer and why? (3 marks) (c) If you like to invest 40% in least risky stock then what is your portfolio beta? Comment on the value (2+2 = 4 marks) (d) What is your portfolio return if DSE expects a decline of 20%? (2 marks)

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