The 2020 stock picks of Craigs Investments:
Company Name	Stock Code	HPR	Expected Return	Standard Deviation	Beta
a2 Mik	ATM.NZ	12.0%	21%	25%	-0.12
Mainfreight	MFT.NZ	-14.3%	25%	30%	0.37
Meridian Energy	MEL.NZ	-3.4%	28%	37%	0.47
Ebos Group	EBO.NZ	-1.0%	15%	20%	0.32
Freightways	FRE.NZ	-16.3%	12%	13%	0.65

 

Describe how an investor can combine a risk-free asset with the five selected stocks recommended by the investment company to produce the optimal investment portfolio suitable for the investor’s level of risk tolerance.

Answer rating: 100% (QA)

Risk and Return are mainly the tradeoffs made for each other by an investor Higher the risk the high... View the full answer