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An equity analyst is considering investing in two listed companies in Bursa Malaysia, Cloud Berhad ( Cloud ) and Point Berhad ( Point ) .

An equity analyst is considering investing in two listed companies in Bursa Malaysia, Cloud Berhad (Cloud) and Point Berhad (Point). The expected returns on each of these two investments vary depending on economic conditions. The following table shows the expected returns and the likelihood of the economic conditions.
Economic conditions
Probability
Cloud returns (%)
Point returns (%)
Recession
40%
(8)
5
Normal
45%
15
12
Boom
15%
28
20

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