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Zeb's Corporation is considering investing in Malaysian security market. The company needs to choose only one from the three securities listed below. The returns are
Zeb's Corporation is considering investing in Malaysian security market. The company needs to choose only one from the three securities listed below. The returns are as follows: Probability Security Q Return Security P Security R 20% 15% 12% 12% 30% 10% 10% 15% 50% 6% 8% 10% Based on the above information, you are required to: a. calculate the expected rate of return for each security. (4 Marks) b. calculate the standard deviation of return for each security. (8 Marks) c. justify the most preferable security based on your calculation in part (a) and (b). (6 Marks) d. If Zeb's Corporation is considering investing in two securities, which securities should be accepted? (2 Marks) (Total: 20 Marks)
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