Question $4$:

Required:

Mrs Apple is a risk taker. Which share is she most likely to invest in and why?

Mrs Smith is risk$-$averse. Which share is she most likely to invest in and why?

$(2)$

Mr$.$ Smith wants to make the best possible investment, regardless of risk. Advise him as

to which share he should invest in$.$ Provide any supporting calculations and comments

which may be necessary.

Define financial risk, and determine which share represents the company with the

highest financial risk.

$(2)$