QUESTION 2 The following table summarized the expected return data for two investments: Shinee and Glimmer Year Shinee G

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Question 2 The Following Table Summarized The Expected Return Data For Two Investments Shinee And Glimmer Year Shinee G 1 (198.21 KiB) Viewed 50 times

QUESTION 2 The following table summarized the expected return data for two investments: Shinee and Glimmer Year Shinee Glimmer 1 19% 8% 2 1% 10% 3 10% 12% 4 26% 14% 5 4% 16% Expected return 12% 12% Based on your observation on the above data, which investment appears to be riskier? Discuss. (No calculation is required.) (5 marks) (6) Calculate the standard deviation for both Shinee and Glimmer to justify your assertion in (a) above. (7 marks) © Besides Shinee and Glimmer, you are also interested to invest in Bright, a risk-free asset that has an expected return on 8%. If you decided to combine the Shinee and Bright at ratio of 70:30 as your investment portfolio. Determine the standard deviation for the portfolio. (3 marks) [Total : 15 marks]