Question: Assignment Exercise 2: Return on Stock Raysut Return on Stock Oman Return on Stock State Probability Cement Cement Dhofar Cement 1 25% 21 23 20

Assignment Exercise 2: Return on Stock Raysut Return on Stock Oman Return on Stock State Probability Cement Cement Dhofar Cement 1 25% 21 23 20 2 15% 19 25 22 3 20% 20 24 24 4 15% 22 22 26 5 Find? 23 26 28 Use the above information and try to answer the following: Assume you are the investor who wants to invest in a two stock/security portfolio made from the above stocks of your choice? a) Fithe expected return of your portfolio formed from the stocks of your choice given above AND you decide the weights for the stocks in the portfolio. b) Calculate your returns from the portfolio assuming you invest OMR 15000 c) Find the Covariance for your portfolio d) Justify as to on what basis did you choose these stocks and how did you decide the weights
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