Aramit Cement and Meghna Cement have the following assets in portfolio and returns of the assets are following. Assets Return of Aramit Cement Return of Meghna Cement Probability Beverage -13.5% -16.5% 22% Steel mills 26.75% 31% 24% Shipping lines 31% 25.5% 30% Consumers 27% 27.5% 24% Calculate the Return, Risk and CV of the portfolio and justify your decision for which portfolio to be selected, and interpret your findings.
Aramit Cement and Meghna Cement have the following assets in portfolio and returns of the assets are following. Assets Return of Aramit Cement Return of Meghna Cement Probability Beverage -13.5% -16.5% 22% Steel mills 26.75% 31% 24% Shipping lines 31% 25.5% 30% Consumers 27% 27.5% 24% Calculate the Return, Risk and CV of the portfolio and justify your decision for which portfolio to be selected, and interpret your findings.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Answer Part-2
Aramit Cement and Meghna Cement have the following assets in portfolio and returns of the assets are following.
|
|
Return of Aramit Cement |
Return of Meghna Cement |
Probability |
|
Beverage |
-13.5% |
-16.5% |
22% |
|
Steel mills |
26.75% |
31% |
24% |
|
Shipping lines |
31% |
25.5% |
30% |
|
Consumers |
27% |
27.5% |
24% |
- Calculate the Return, Risk and CV of the portfolio and justify your decision for which portfolio to be selected, and interpret your findings.
- Define different types of systematic risk and idiosyncratic risk with examples in the context of Bangladeshi firms to operate a business.
- Define constant growth model? Differentiate between independent and mutually exclusive projects with examples.
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