Mr Firdaus Hisham is currently working as a fund manager in ABM Amanah Berhad in Kuala...

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Mr Firdaus Hisham is currently working as a fund manager in ABM Amanah Berhad in Kuala Lumpur. He is considering to construct a two-stock portfolio for his client. His client have two options either: Option 1 to invest 50% in Old Town Coffee Berhad and another 50% in Home Depot or Option 2 to invest 50% in Old Town Coffee Berhad and the remaining 50% in IBM stock. Suppose Old Town Coffee Berhad, Home Depot Berhad and IBM have the realized returns as follows Akhir-Tahun! Year-End (c) 2012 2013 2014 2015 2016 2017 Old Town Coffee Home Depot IBM Pulangan Sebenar / Pulangan Sebenar/ Pulangan Sebenar / Realized Return Realized Return Realized Return 20.3% 72.7% (1) -25.7% 56.3% 6.7% 17.9% -14.6% 4.8% -58.1% 71.7% 17.3% 0.9% Kirakan yang berikutnya/Compute the following: (a) Pulangan yang dijangkakan untuk Old Town Coffee Berhad, Home Depot dan IBM Expected return for Old Town Coffee Berhad, Home Depot and IBM (4.5 markah/marks) (b) Varians dan sisihan piawai untuk Old Town Coffee Berhad, Home Depot dan IBM. 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% Variance and standard deviation for Old Town Coffee Berhad, Home Depot and IBM (5 markah/marks) (d) Pulangan portfolio bagi kedua-dua portfolio. Portfolio return for both portfolios Kovarian untuk Old Town Coffee dan Home Deport, Old Town Coffee dan IBM Covariance for Old Town Coffee and Home Deport, Old Town Coffee and IBM (e) Volatiliti portfolio bagi kedua-dua portfolio, Portfolio Volatility for both portfolios Portfolio manakah yang anda nasihati kepada klien beliau untut melabur? Kenapa? Which portfolio would you advise for his client to invest? Why? Mr Firdaus Hisham is currently working as a fund manager in ABM Amanah Berhad in Kuala Lumpur. He is considering to construct a two-stock portfolio for his client. His client have two options either: Option 1 to invest 50% in Old Town Coffee Berhad and another 50% in Home Depot or Option 2 to invest 50% in Old Town Coffee Berhad and the remaining 50% in IBM stock. Suppose Old Town Coffee Berhad, Home Depot Berhad and IBM have the realized returns as follows Akhir-Tahun! Year-End (c) 2012 2013 2014 2015 2016 2017 Old Town Coffee Home Depot IBM Pulangan Sebenar / Pulangan Sebenar/ Pulangan Sebenar / Realized Return Realized Return Realized Return 20.3% 72.7% (1) -25.7% 56.3% 6.7% 17.9% -14.6% 4.8% -58.1% 71.7% 17.3% 0.9% Kirakan yang berikutnya/Compute the following: (a) Pulangan yang dijangkakan untuk Old Town Coffee Berhad, Home Depot dan IBM Expected return for Old Town Coffee Berhad, Home Depot and IBM (4.5 markah/marks) (b) Varians dan sisihan piawai untuk Old Town Coffee Berhad, Home Depot dan IBM. 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% Variance and standard deviation for Old Town Coffee Berhad, Home Depot and IBM (5 markah/marks) (d) Pulangan portfolio bagi kedua-dua portfolio. Portfolio return for both portfolios Kovarian untuk Old Town Coffee dan Home Deport, Old Town Coffee dan IBM Covariance for Old Town Coffee and Home Deport, Old Town Coffee and IBM (e) Volatiliti portfolio bagi kedua-dua portfolio, Portfolio Volatility for both portfolios Portfolio manakah yang anda nasihati kepada klien beliau untut melabur? Kenapa? Which portfolio would you advise for his client to invest? Why?