a) Based on your previous answer, calculate Cobies portfolio return on 6th July by assuming:

i) The price of Stock AM, BD and CL on 6th of July is RM6, RM7 and RM3 respectively.

ii) Cobie can only purchase stock AM by using the proceeds of selling stock CL iii) Cobie can only afford to have two stocks in her portfolio simultaneously.

h) If Cobie intends to hold the new portfolio for a year time, calculate her HPR after a year, assuming:

i) The price of Stock AM, BD and CL in a year time will be RM10, RM5 and RM4 respectively

ii) During the one-year period, Stock AM paid RM1 dividend for every unit while stock BD paid RM0.50 dividends per share during the same time period. Stock CL did not pay any dividend

Cobie is evaluating her portfolio performances. She currently has two stock (Stock BD and Stock CL) in her portfolio which she acquired 6 months ago. She notices that the correlation coefficient of her portfolio are almost perfectly positive thus she is considering to remove Stock CL from her portfolio. Furthermore, stock CL is continuously having a drop in its value. The potential replacement is Stock AM. Cobie downloaded the last five days' data of Stock AM to help in her decision. Date 1/7/2020 2/7/2020 3/7/2020 4/7/2020 5/7/2020 Open 2.20 2.50 3.00 4.20 3.78 Stock AM (in RM) Close 2.50 3.00 4.20 3.78 5.67 7 Matric no: Section: FIN4020 She also observes that her current portfolio is having the following information: Date Rates of return (ri) (in %) Stock BD Stock CL 1/7/2020 2/7/2020 10 -20 3/7/2020 5 -10 4/7/2020 20 5 5/7/2020 15 -5 Number of units owned 10,000 10,000