Question
Flu Medical Equipment Company is U.S. based company and its main objective is to produce medical equipment for hospitals. During COVID 19, Flu medical equipment
Flu Medical Equipment Company is U.S. based company and its main objective is to produce medical equipment for hospitals. During COVID 19, Flu medical equipment company producing disposable Personal Protective Equipment (PPE kit) and selling to different countries. In order to earn more profit the company is willing to invest in stock market also. Suppose you are financial advisor of Flu Medical Equipment Company and currently your client is only investing in U.S stock market. Now the company is considering diversifying in U.K. stock market also. Assume that during current scenario, there are neither restriction nor barriers to invest in U.K. stock market. Your client would like to know the benefits if the company is investing in U.K. stock market also. Discuss following questions with appropriate answers. Answers should connected with the scenario of case study. (A)Using the Modern Portfolio Theory (MPT) how the maximum benefits can be earn in the company. (B) Advice to your client for the strength and weakness of MPT. (C) Would the Theory of Market Efficiency helpful in decision-making? (D)How the value of company could affected by managements choice for investing in U.K. stock market?
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