Foreign investors want to invest in Namibia into the fishing sector. There are stocks available for...
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Foreign investors want to invest in Namibia into the fishing sector. There are stocks available for two fishing companies, but only have to pick one option either in Macedonia Fishing or England fishing based on scenario views and estimations. Based on the below, probabilities and returns answer the questions that follows? (30 marks) Macedonia fishing Investors view Pessimistic Most Likely Optimistic England fishing Pessimistic Most Likely Optimistic Probabilities Estimated returns 0.25 18% 0.50 14% 0.25 13% Probabilities Estimated returns 0.25 24% 0.50 14% 0.25 9% 1 Calculate the expected rate of return of of each of the group companies. (10 marks) 2 Calculate the standard deviations of each of the group companies. (10 marks) 3 Based on the standard deviation which return would you choose and why? (2 marks) 4 Determine the coefficient of variation (COV) of each of the two fishing companies? (3 marks) 5 If you have a low risk appetite and you consider the turmoil in the fishing sector, which fishing company would you invest in and which one would you disinvest from? Explain your answer. (5 marks) Foreign investors want to invest in Namibia into the fishing sector. There are stocks available for two fishing companies, but only have to pick one option either in Macedonia Fishing or England fishing based on scenario views and estimations. Based on the below, probabilities and returns answer the questions that follows? (30 marks) Macedonia fishing Investors view Pessimistic Most Likely Optimistic England fishing Pessimistic Most Likely Optimistic Probabilities Estimated returns 0.25 18% 0.50 14% 0.25 13% Probabilities Estimated returns 0.25 24% 0.50 14% 0.25 9% 1 Calculate the expected rate of return of of each of the group companies. (10 marks) 2 Calculate the standard deviations of each of the group companies. (10 marks) 3 Based on the standard deviation which return would you choose and why? (2 marks) 4 Determine the coefficient of variation (COV) of each of the two fishing companies? (3 marks) 5 If you have a low risk appetite and you consider the turmoil in the fishing sector, which fishing company would you invest in and which one would you disinvest from? Explain your answer. (5 marks)
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