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You feel confident in your investment knowledge and would like to invest RM100,000 into Malaysian stock market by constructing a portfolio of two different common stocks on either a long-, medium-, or short-term basis. Regardless of market conditions, investors who place their money at risk must know how to gather, analyze, and interpret information about each of their investment vehicles. Based on your own investment philosophies and evaluations, answer the following questions. Questions: a) Name the two selected common stocks for your portfolio. State the THREE (3) major reasons for selecting those stocks with evidences. (Hint: diversification purpose, fundamental analysis, technical analysis) [20 marks] b) Using historical data from various traditional (written) or online sources, compute the average monthly return and standard deviation of the returns of each of your selected stocks over a year period. (Sources: investing.com) [8 marks] c) Construct a portfolio which consists of that two selected stocks with your own developed stock allocation scheme. Explain the rationale(s) for your stock allocation scheme and calculate the portfolio return and standard deviation of portfolio return over a year period. Explain the benefits(s) of constructing your portfolio.

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