The yield from an investment in government stock in the Ghana exchange stock is expected to be “high” with a probability of 0.27 and “moderate” with a probability of 0.48 

According to market analysis from the media group each Ghs 1 Invested on government stock in the governments exchange market will yield a high return of 22% a Moderate return of 40% and a low return of 8.3 next year Similarly a yield from an investment in private stock on the exchange market is expected to be “high” with a probability of 0.25 and “moderate” with 0.44. 

According to market reports, each $ invested in the private stock in the Ghana stock exchange will yield a “high” return of 24% “moderate 37% and low return of 0.65% next year. An investor has $666000 to invest in either government or private stock but not both assume the exchange rate for the dollar to cedis currently stays at Ghs 4 to a dollar 

a. The amount (Ghs) invested into government stock when the yield is expected to be moderate?? 

b. The amount (dollars) invested into private stock when the yield is expected to be low 

c. The expected return for investing into government stock (USD) 

d. The expected return for investing into private stock (USD) 

e. By how much the best yielding stock exceeds the least yielding stock (USD)

Answer rating: 100% (QA)

a The amount G hs invested into government stock when the yield is expected to be moderate ANS WER T... View the full answer