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Question 2 (5 marks) Suppose you are an investment consultant. You have produced below analysis of the key financial ratios of 5 companies, Average return

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Question 2 (5 marks) Suppose you are an investment consultant. You have produced below analysis of the key financial ratios of 5 companies, Average return Standard deviation Variance Skewness Kurtosis Alibaba Zoom Video Merck & Starbucks Group Communications. Co., Inc. Corporation Caterpillar Holding Inc. (ZM) (MRK) (SBUX) Inc. (CAT) Limited 1.95 0.18 0.54 0.61 0.31 8.844 3.190 4.498 4.546 4.740 78.214 10.177 20.230 20.663 22.469 0.113 -0.138 0.162 -0.479 -0.295 -0.127 0.081 3.678 1.984 1.641 You are required Based on the above analysis, please advise your client which of these companies he/she needs to invest as the first choice. Which company he/she must not invest. Clearly explain your client the reasoning behind your advice. Explain the limitations of your analysis

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