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1.) FransNk Kwame Company must invest in asset purchases. The annual rate of return and related probabilities given below summarize the firms analysis. Determine the

1.) FransNk Kwame Company must invest in asset purchases. The annual rate of return and related probabilities given below summarize the firms analysis.

  1. Determine the expected return of the company (2marks)
  1. Calculate the quantify risk associated with the investment (2marks)

2. Discuss three risks that, FransNk Kwame Company might face in the Ghanaian economic market whiles investing. (3marks)

PROBABILITY RETURN
0.05 +50%
0.25 +30%
0.4 +10%
0.25 -10%
0.05 -30%

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