PLEASE ANSWER QUESTION 2 ONLY

QUESTION 1 [10 Marks) An investment manager "runs" money and uses their understanding of investment vehicles; valuation and strategies of selection to accomplish investment objectives. In light of this statement, describe the investment management process. [20 Marks] QUESTION 2 You are considering two investments and can only invest in either the shares of company X or in the shares of company Y. The following information regarding returns and probability distributions of returns is relevant. Share Y Share X Return Return Probability 0.20 Probability 0.20 0% 0.60 0.20 10% 15% 20% 0.30 0.30 10% 20% 30% 0.20 2.1. [6] [8] 2.2. Calculate the expected return of X and Y? Calculate the standard deviations of X and Y's returns What is the coefficient of variation of X and Y? What would you recommend? Why? 2. 3. [4] [2] 2. 4. [20 Marks] QUESTION 3 3.1. Mr Shikongo went to Nedbank Ltd on 1 January 2016 and borrowed N$80,000.00 to buy a plot in Rundu. This loan is to be repaid in equal monthly instalments for 30 years. In the contract, the bank indicated that the interest rate is 9% per annum. What is the monthly instalments that Mr Shikongo would be expected to pay to Nedbank Ltd? 15]