Question
MBUI merchants have designed an investment portfolio package to invest some excess cash amounting to Kenya shillings 183 million. The company is considering securities as
- MBUI merchants have designed an investment portfolio package to invest some excess cash amounting to Kenya shillings 183 million. The company is considering securities as the investment vehicle. The selection of the portfolio is presented in the schedule below.
| INVESTMENT | EXPECTED RETURN |
| Kakuzi Limited | 8% |
| Standards Bank | 12.1% |
| Total Kenya | 9.2% |
| Kenya power limited | 4% |
| Hotel Serena | 5.3% |
| BP Shell | 16.4% |
| Kapchorua Tea Limited | 1.1% |
| Wal-Mart | 18% |
| Dell computers | 11% |
| General electric | 11% |
| Johnson & Johnson | 3% |
| Kenol Kobil | 2% |
REQUIRED
You have been approached by the management of Endelea merchants who are eager to know the expected return of the portfolio. You have been made aware that the formation of the portfolio is based on the Ksh 183 million committing the funds in equal amounts to each of the companies identified. Advise the management accordingly
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
