Question
Zarina is considering buying the shares of Maxis, Digi, and Celcom. The possible return for the companies' shares next year are as follows State of
Zarina is considering buying the shares of Maxis, Digi, and Celcom. The possible return for the companies' shares next year are as follows
| State of economy | Probability | Investment Revenue | ||
| Maxis | Celcom | |||
| Growth | 0.4 | 18% | 15.5% | 13% |
| Normal | 0.5 | 10.05% | 8% | |
| Recession | 0.1 | 7% | 5% | 6% |
Based on the information given, calculate the following for each stock:
|
b. Raja Berhad has RM40,000 invested in a share which has a beta of 0.7 and RM20,000 invested in another share with a beta of 1.8. If these are the only two investments in its portfolio, calculate the portfolio beta. | (6 Marks) (9 Marks) (6 Marks) (3 Marks) (6 Marks) |
Calculate the expected rate of return of the shares.Step by Step Solution
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
