The following information is the probability distribution of returns for Ubi Kayu Berhad and Ubi Kentang...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is the probability distribution of returns for Ubi Kayu Berhad and Ubi Kentang Berhad stocks: Probability Ubi Kayu Stock Ubi Kentang Stock From the above information you are required to answer the following questions. a. Assume that you will be investing 30% in Ubi Kentang Berhad stock and 70% in Ubi Kayu Berhad stock, determine the expected return and standard deviation on the portfolio. 0.20 -10% -9% 0.30 18% 2% 0.40 24% 14% 0.10 35% 18% b. Briefly discuss the relationship between risk and return when making financing decisions. The following information is the probability distribution of returns for Ubi Kayu Berhad and Ubi Kentang Berhad stocks: Probability Ubi Kayu Stock Ubi Kentang Stock From the above information you are required to answer the following questions. a. Assume that you will be investing 30% in Ubi Kentang Berhad stock and 70% in Ubi Kayu Berhad stock, determine the expected return and standard deviation on the portfolio. 0.20 -10% -9% 0.30 18% 2% 0.40 24% 14% 0.10 35% 18% b. Briefly discuss the relationship between risk and return when making financing decisions.
Expert Answer:
Answer rating: 100% (QA)
a Expected Return on Portfolio Ubi Kayu Berhad Stock 07 x 18 126 Ubi Kentang Berhad Stock 03 x 24 72 ... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-4. Ivan and Irene paid the following in 2012 (all by check or can otherwise be...
-
Suppose that the vice president of marketing asks you to write a program to create labels for a onetime advertising promotion. As IT manager, you know that the labels can be prepared more efficiently...
-
During the 2004 Olympic Games, Hill and Barton (2005) monitored contests in four combat sports: Greco-Roman wrestling, freestyle wrestling, boxing, and tae kwon do. Half of the competitors were...
-
In Problem, suppose a company has its total cost for a product given by C(x) = 200x + 10,000 dollars and its total revenue given by R(x) = 250x - 0.01x 2 dollars, where x is the number of units...
-
Jaguar Hotel Corporation has a hotel, dining room, and conference centre facility. The accountant has presented the following budget data: a. Produce a budget that shows the contribution for each of...
-
FunTime Company produces three lines of greeting cards: scented, musical, and regular. Segmented income statements for the past year are as follows: Kathy Bunker, president of FunTime, is concerned...
-
hen you write a compare and contrast essay, you need to u will use an evaluative thesis or an explanatory thesis. An evaluative thesis reflects an opinion or judgment abo being compared. An...
-
The Fly-Right Airplane Company builds small jet airplanes to sell to corporations for the use of their executives. To meet the needs of these executives, the companys customers sometimes order a...
-
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: 1 2 Dec. 31, 2018 Dec. 31, 2017 Assets 3 Cash $146,460.00 $179,930.00 4 Accounts receivable...
-
Which of the following are important factors in ensuring the integrity of accounting information? a. Institutional factors, such as standards for preparing information. b. Professional organizations,...
-
As ZTechs accountant you make payroll tax deposits. Recently ZTech has experienced financial distress. Your boss suggests that the company skip its upcoming quarterly tax deposit, and make the amount...
-
Marv Johnson, auditor in charge in the audit of receiving operations, warmly greeted Phil Goldsmith, the assistant just assigned to his job. "Man, do I need you, " he said. "Art Lash got yanked off...
-
Review the chapters opening feature about Youngsong Martin and Wildflower Linens. Required Martin stresses that controlling payroll liabilities is a must to succeed in business. What are some...
-
In discussing the audit findings, the internal auditor may show the audit working papers to the auditee when: a. Performing an audit of negotiable securities. b. Audit objectives are not compromised....
-
MCA Healthcare issues a 5 year bond with an annual coupon of 7% and a face value of $100. What is the value of the bond if the yield to maturity is 7%?
-
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
-
During the past five years, you owned two stocks that had the following annual rates of return: a. Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by...
-
Suppose the current value of a popular stock index is 653.50 and the dividend yield on the index is 2.8 percent. Also, the yield curve is flat at a continuously compounded rate of 5.5 percent. a. If...
-
Would you expect a steel company or a retail food chain to have greater business risk? Discuss this expectation in terms of the components of business risk.
-
United Limited, a company that manufactures sporting equipment and accessories, owns a number of properties, which are listed below: 1. Trafford Lane: a freehold factory and office block used...
-
Helix Limited (Helix) purchased three identical properties (Right, Left and Up), and leased a fourth (Down), which has been classified as a right-of-use asset in accordance with IFRS 16 Leases,...
-
What are the principal accounting and disclosure differences between IAS 40 and FRS 102, Section 16?
Study smarter with the SolutionInn App