Nailis Soyara, a newbie in investment world is considering to invest in a single investment. She have been observed that there are two alternatives, Floweria Berhad and Indah Water Berhad which have potential to bullish. Floweria Berhad expected to increase from RM40 to RM45 per share while Indah Water Berhad from RM28 to RM30 over the next year. The annual return on FTSE BM KLCI has been 5.95 percent and Malaysian Treasury Bill has been yielding 3.55 percent over the past 10 years. If beta for Floweria Berhad and Indah Water Berhad are 1.4 and 1.6, advise Nailis Soyara which investment should she invest using Capital Asset Pricing Model (CAPM).
