Question: QUESTION 2 ( Risk and Return ) ( 3 0 Marks ) Following extensive analysis and forecasting, you have established that an investment in a

QUESTION 2(Risk and Return)
(30 Marks)
Following extensive analysis and forecasting, you have established that an investment in a registered public Ltd company offers different expected return to the business' investments based on different state of the economy. If an analysis of past returns and forecast offers the probability distribution of returns on given state of the economy:
\table[[State of the Economy,Probability of State of,Return (R)],[,The economy (P),],[Super boom,10%,50%
 QUESTION 2(Risk and Return) (30 Marks) Following extensive analysis and forecasting,

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