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Maf 603-T2-PF Mgmt-Exercise 1
Maf 603-T2-PF Mgmt-Exercise 1
Maf 603-T2-PF Mgmt-Exercise 1
EXERCISE 1
1. You are considering two securities in the market, Tweety and Deedee. The following table shows
their possible payoffs.
Estimated returns
State of economy Probability Tweety Deedee
Optimistic 0.2 0.2 0.35
Normal 0.7 0.3 0.3
Pessimistic 0.1 0.4 0.2
Required:
2. You are considering investing your money in Bursa Malaysia and decide to consider two stocks; A
and B. The table below shows relevant information related to the two stocks:
Required: