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I need solution of only question b. urgent You are considering investing in Barr Ltd. Barr Ltd. has the following profitability range using Portfolio Theory:
I need solution of only question b. urgent
You are considering investing in Barr Ltd. Barr Ltd. has the following profitability range using Portfolio Theory: Economy Good Average Bad Worse Probability 0.1 0.4 0.3 0.2 Return % 20 16 10 3 Page 4 of 6 It has a standard deviation of 5.5 as a measurement of its risk. You are required to assess its investment potential comparing the results with two other investments in Collins and Daniels. Their performance is as follows:- Expected Return Expected Risk Collins 15% 5% Daniels 20% 10% You are required to:- a) Calculate the expected return (T) of Barr Ltd. (8 marks) b) Using Utility Theory measure the performance of your three chosen companies. (8 marks) c) Plot the results on a risk and return graph. (7 marks) d) Comment on the resultsStep by Step Solution
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