QUESTION $1[35$ MARKS$]$

A$.$ Choose two companies from different industries $($for example, one from the technology

sector and one from the energy sector$).$ Analyse their investment strategies by focusing

on the valuation techniques they use $($such as discounted cash flow $($DCF$),$ market

multiples or asset valuation$).$ Critically examine how these techniques are applied,

considering the specific challenges and opportunities in their respective industries. $(20)$

B$.$ Reflect on the effect that diversification has on the expected return and risk of the

companies chosen. Analyse how these companies use diversification to mitigate risks in

their portfolios and assess the effect on shareholder value. $(15)$