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QUESTION1 Regain Berhad has RM15,000 and wanted to invest RM8,000 in Stock AA and the remaining in Stock AAA The risk-fr
Posted: Mon Jan 17, 2022 8:07 am
by answerhappygod
- Question1 Regain Berhad Has Rm15 000 And Wanted To Invest Rm8 000 In Stock Aa And The Remaining In Stock Aaa The Risk Fr 1 (132.1 KiB) Viewed 44 times
QUESTION1 Regain Berhad has RM15,000 and wanted to invest RM8,000 in Stock AA and the remaining in Stock AAA The risk-free rate is 5% and the market premium is 2% If the beta for Stock AA is 0.8 and Stock AAA is 1.2. Using CAPM, calculate expected return for: Stock AA (3 marks) Stock AAA (3 marks) 111 Portfolio (5 marks) Based on the information of Stock AA where the beta is 0.8 and risk-free rate is 5%, draw the security market lines (SML) to show the movement SML when there is 2% inflation premium. (5 marks) [Total: 16 marks]