Question
Donna, a chartered financial analyst (CFA), is willing to invest in the Alternative Investment Market (AIM) in the United Kingdom. She collected the information on
Donna, a chartered financial analyst (CFA), is willing to invest in the Alternative Investment Market (AIM) in the United Kingdom. She collected the information on two different company from the London Stock Exchange. Given the probability distributions for the state economy in the United Kingdom, calculate:
Alph Biotech Plc Astratech Plc
State of Economy Probability Return (%) Probability Return (%)
Recession 0.20 8 0.30 -4
Normal 0.50 12 0.40 9
Boom 0.30 18 0.30 16
Based on the information given, assists Donna to decide on her investment.
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