7/21/22, 3:45 PM T1-PHE2035/ACC1005 FOUNDATIONS OF FINANCE

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T1-PHE2035/ACC1005 FOUNDATIONS OF
FINANCE
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LLGAY JAN 16, 2022 11:48PM

Link
LLGAY MAY 25, 2022 05:24AM

https://padlet.com/linglgay/fsibosxyjok81av

ANONYMOUS JUL 21, 2022 06:11AM

Kian boon

ANONYMOUS JUL 21, 2022 06:23AM

Jonah
To help lower the risks by spreading the investments across
financial instruments, industries, different areas.

The more assets that you invest in, the greater the benefits
of diversification.

Q1
Q2
LLGAY JUL 21, 2022 06:32AM

ANONYMOUS JUL 21, 2022 06:15AM

Kirthana
Unsystematic risk = specific to company/industry
systematic risk = risk tied to a broader market

ANONYMOUS JUL 21, 2022 06:11AM

Keris ANONYMOUS JUL 21, 2022 06:15AM

Clarisse

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LLGAY JUL 21, 2022 06:29AM
× The total risk of a portfolio (or a security) is measured
by the standard deviation (or variance) of its returns. The
total risk of a portfolio can be reduced by increasing the
number of securities in the portfolio.
× The systematic risk of a security is measured by its
beta value. This is the relevant measure of a security’s risk
for an investor who holds the security as part of an efficient
portfolio. Systematic risk is that component of a security’s
total risk that cannot be diversified away, and it is totally
dependent on market factors.
× Unsystematic risk is the difference between a
security’s total risk and its systematic risk, and it is that part
of total risk that is specific to the security. Unsystematic risk
is sometimes referred to as the security’s diversifiable risk,
as it can be completely removed by holding the security as
part of an efficient portfolio.
ANONYMOUS JUL 21, 2022 06:17AM
Zani
Q3
ANONYMOUS JUL 21, 2022 06:09AM
Q3) Mavis
ANONYMOUS JUL 21, 2022 06:15AM
Negative beta indicates an inverse relation to the market. It
is very rare to see shares move against the market
-farween
ANONYMOUS JUL 21, 2022 06:20AM
soh min
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It is because shares with negative betas are inversely
related to the stock market, and move in the direction
opposite of the market's movement. This means that the
company will do well even when the market is declining,
hence such shares are very rare.
LLGAY JUL 21, 2022 06:35AM
There are few, if any, shares with negative betas, because
the returns on most businesses are positively related to the
state of the economy that is reflected in the returns on the
market portfolio—that is, when the economy is growing
strongly, the profitability of most companies will increase,
and the prices of their shares will increase. Conversely,
during a recession or depression, the profitability of most
companies will fall, as will the prices of their shares and the
value of the market portfolio. Therefore, the returns on
most shares will be positively correlated with the returns on
the market portfolio, which means that most shares will
have positive betas.
ANONYMOUS JUL 21, 2022 06:20AM
Siva
Q4
ANONYMOUS JUL 21, 2022 06:23AM
Current portfolio is not efficient.
Miguel
ANONYMOUS JUL 21, 2022 06:27AM
Jen
The portfolio is not efficient, investor will not invest as stock
is overvalued.
ANONYMOUS JUL 21, 2022 06:28AM
sylvia
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LLGAY JUL 21, 2022 06:38AM

Your current portfolio is not efficient. In an efficient

portfolio there is no way to reduce the volatility of the
portfolio without lowering its expected return

ANONYMOUS JUL 21, 2022 06:33AM

Siva

Q5
ANONYMOUS JUL 21, 2022 06:43AM

Aleo John Goh Chan

LLGAY JUL 21, 2022 07:22AM

terrible answer ― ANONYMOUS

the answer is actually:L ― ANONYMOUS (a) A risk-averse investor requires a higher return to
compensate for additional risk. In this situation, Mr Bob Neil
a. X Z Y ― ANONYMOUS would prefer either X or Z to Y.
(b) A risk-neutral investor ignores risk when making
b. Z X Y ― ANONYMOUS
investment decisions. In this case, Mr Bob Neil would rank Z
first, and then rank X and Y equally.
c. Z Y X ― ANONYMOUS
(c) A risk-seeking investor obtains utility from both
expected return and risk. Therefore, Mr Bob Neil would
ANONYMOUS JUL 21, 2022 06:24AM prefer Z to Y and, in turn, prefer Y to X.

Yu Ting

Q6
ANONYMOUS JUL 21, 2022 06:10AM

Brandon

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ANONYMOUS JUL 21, 2022 06:11AM ANONYMOUS JUL 21, 2022 06:15AM

Kian boon Q6 a) Mavis

ANONYMOUS JUL 21, 2022 06:15AM

Lava
ANONYMOUS JUL 21, 2022 06:24AM

Kirthana
6a)

ANONYMOUS JUL 21, 2022 06:18AM

Zani

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nice ― ANONYMOUS

YNWA ― ANONYMOUS

ANONYMOUS JUL 21, 2022 06:31AM

sylvia qn6(a)

ANONYMOUS JUL 21, 2022 06:22AM

soh min: 6a

ANONYMOUS JUL 21, 2022 06:40AM

6c jerrell

ANONYMOUS JUL 21, 2022 06:22AM

aleo

Q7
nice ― ANONYMOUS

ANONYMOUS JUL 21, 2022 06:14AM

ANONYMOUS JUL 21, 2022 06:25AM Brandon

6a)
x(10.8) + (1-x)(15.6) = 12
x = 75% (A)
1-x - 25% (B)
-farween

ANONYMOUS JUL 21, 2022 06:29AM

6c) Nicholas

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ANONYMOUS JUL 21, 2022 06:16AM ANONYMOUS JUL 21, 2022 06:18AM

Clarisse Siva

Q8
ANONYMOUS JUL 21, 2022 06:13AM

Q8 a -Mavis

ANONYMOUS JUL 21, 2022 06:18AM

Chrystabelle -Qn7

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ANONYMOUS JUL 21, 2022 06:14AM

Q8 b&c - Mavis

ANONYMOUS JUL 21, 2022 06:15AM

Chrystabelle -(8c)

ANONYMOUS JUL 21, 2022 06:14AM

Brandon

ANONYMOUS JUL 21, 2022 06:18AM

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Keris

ANONYMOUS JUL 21, 2022 06:18AM

Clarisse
8c

ANONYMOUS JUL 21, 2022 06:22AM

Siva

ANONYMOUS JUL 21, 2022 06:21AM

ANONYMOUS JUL 21, 2022 06:24AM

Nicholas

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ANONYMOUS JUL 21, 2022 06:33AM

Kian boon

ANONYMOUS JUL 21, 2022 06:42AM

8 -jerrell

ANONYMOUS JUL 21, 2022 06:30AM

soh min 8c

ANONYMOUS JUL 21, 2022 06:51AM

Zani 8C

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ANONYMOUS JUL 21, 2022 07:11AM ANONYMOUS JUL 21, 2022 06:20AM

Kirthana 8C Keris

ANONYMOUS JUL 21, 2022 06:20AM

Chrystabelle

Q9
ANONYMOUS JUL 21, 2022 06:25AM

Qns 9 - Mavis

ANONYMOUS JUL 21, 2022 06:19AM

Kian boon

ANONYMOUS JUL 21, 2022 06:19AM

Clarisse

ANONYMOUS JUL 21, 2022 06:23AM

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Siva

ANONYMOUS JUL 21, 2022 06:29AM

aleo

GSK = 6.12% ― ANONYMOUS

Aetna = 43.37% ― ANONYMOUS

ANONYMOUS JUL 21, 2022 06:55AM

9 -jerrell

ANONYMOUS JUL 21, 2022 06:30AM

soh min

ANONYMOUS JUL 21, 2022 06:40AM

Nicholas

yr 4 i calculated wrongly should be 37.67% ― ANONYMOUS

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ANONYMOUS JUL 21, 2022 07:02AM

Zani

Q10
ANONYMOUS JUL 21, 2022 06:23AM

Qns 10 -Mavis

ANONYMOUS JUL 21, 2022 06:23AM

ANONYMOUS JUL 21, 2022 06:20AM

Clarisse Chrystabelle

ANONYMOUS JUL 21, 2022 06:21AM

Kian boon

ANONYMOUS JUL 21, 2022 06:23AM

Brandon

ANONYMOUS JUL 21, 2022 06:24AM

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Siva

ANONYMOUS JUL 21, 2022 07:35AM

ANONYMOUS JUL 21, 2022 06:31AM

soh min Brandon

ANONYMOUS JUL 21, 2022 06:32AM

ANONYMOUS JUL 21, 2022 07:05AM

Zani

ANONYMOUS JUL 21, 2022 07:07AM

10-jerrell

ANONYMOUS JUL 21, 2022 07:42AM

Nicholas

Add'l Qn
ANONYMOUS JUL 21, 2022 07:35AM

Kian boon

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ANONYMOUS JUL 21, 2022 07:43AM

Siva

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