Question: QUESTION 4 a) You are required to construct an optimum portfolio for your client. Your research assistant has obtainedinformation below you: Stock Excess Return to

QUESTION 4

a) You are required to construct an optimum portfolio for your client. Your research assistant has obtainedinformation below you:

Stock Excess Return to Beta Ratio C- Value Z- value

Apex 11.7467 5.7725 0.473485

Bonia 8.9431 6.9816 0.237567

Canon 8.6957 5.8617 0.184789

Dulux 7.3684 5.0802 0.155271

Emerald 3.1250 3.4562 -0.166850

i) List the stocks that you should include in your client's portfolio. Give reasons for your choice.

ii) If your client has RM2 million to invest in the stocks above, calculate the amount that he should invest in each stock.

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