3. Please answer the follow questions. a. The following two plans were available to Mr. Wong today: Plan A: $30000 of a company's shares, with expected annual dividends (at year end) of $200 for three years, and a share value of $32000 at the end of 3 years. Plan B: $30000 of a company's bonds, with $300 annual interest (at the end) of $300 for three years. The bond would be matured at the end of third year. Suppose the cost of capital is 5% and Mr. Wong only has $30000 for investment. Advise Mr. Wong which investment plan he should adopt. Explain your answer by using the concept of net present value. (5 marks) b. If you deposit $5000 to bank today at an annual interest rate of 6%, compound semi-annually, how much will you get back at the end of year 2 ? (3 marks) c. Are the following statements true or false? Explain. (i) Investor can eliminate his investment risk by adopting the strategy of risk diversification. (2 marks) (ii) An MPF scheme member can withdraw his accrue benefit immediately if he retires at the age of 55 . (2 marks) d. Explain how the closure of Hong Kong Cable Television Limited would affect the share price of TVB Limited