Question: QUESTION 1 a) Based on the information summarized below, compute the portfolio standard deviation. Return (%) State 1 2 3 4 Security Azalia 0.30

QUESTION 1 a) Based on the information summarized below, compute the portfolio standard deviation. Return (%) State 1 2 3 4 Security Azalia 0.30 0.30 0.25 0.30 Bonafit 0.20 0.30 0.25 0.45 Credacia 0.50 0.40 0.50 0.25 Azalia RM45,000 Investment Planning Bonafit RM25,000 Additional portfolio information Credacia RM30,000 TB,C 0.3086 -0.9795 COVAC -10.9375 Note: Probability of the state occurrence is equal (15 marks) b) Discuss the appropriate investment strategies of an individual during the accumulation and gifting phases of her or his life. (5 marks)

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