Question 2 (Source: Chapter 2) Al Madina Investment Company has many big clients. They provide loans and investments to the big companies and corporations. In the industry, they have built a very good reputation of dealing with their clients. As of 2021 they have generated a net income of 15 Million Rials. They have hired the new financial manager Mr. Ahmed who has a very good and strong qualification and credential as well as wide experience in the field. The Board of Directors will call for a meeting to discuss investments they are going to choose. Prior to the meeting, Mr. Ahmed was tasked to do some research on potential investments in the country. He is required to present a report containing the details of investment opportunities. Below are the investment opportunities available in the market: 1. The oil price is getting high as of now and oil companies are offering shares with high rate of returns (Note that oil prices are fluctuating) 2. Banks are offering stable interest rate of 2.5%. 3. Investment in gold showing an indicator of high rate of return as of now. (Minimum word count for Case Study is 300 Words) 1. If you were the finance manager, which investment would you recommend considering the risk and return trade off? Justify your answer. Make a short explanation on the type of markets mentioned in this case. 2. If you were one of the Board of Directors, would you listen and vote for the recommendation of the finance manager? Why or why not? In your opinion should the company invest on those markets shown in the case, or should they save their funds for a possible expansion for their own business? Would they put their funds on their own company expansion or should they put it outside for investment? Why or why not? Explain your answer. Question 2 (Source: Chapter 2) Al Madina Investment Company has many big clients. They provide loans and investments to the big companies and corporations. In the industry, they have built a very good reputation of dealing with their clients. As of 2021 they have generated a net income of 15 Million Rials. They have hired the new financial manager Mr. Ahmed who has a very good and strong qualification and credential as well as wide experience in the field. The Board of Directors will call for a meeting to discuss investments they are going to choose. Prior to the meeting, Mr. Ahmed was tasked to do some research on potential investments in the country. He is required to present a report containing the details of investment opportunities. Below are the investment opportunities available in the market: 1. The oil price is getting high as of now and oil companies are offering shares with high rate of returns (Note that oil prices are fluctuating) 2. Banks are offering stable interest rate of 2.5%. 3. Investment in gold showing an indicator of high rate of return as of now. (Minimum word count for Case Study is 300 Words) 1. If you were the finance manager, which investment would you recommend considering the risk and return trade off? Justify your answer. Make a short explanation on the type of markets mentioned in this case. 2. If you were one of the Board of Directors, would you listen and vote for the recommendation of the finance manager? Why or why not? In your opinion should the company invest on those markets shown in the case, or should they save their funds for a possible expansion for their own business? Would they put their funds on their own company expansion or should they put it outside for investment? Why or why not? Explain your
