Question No 2. (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. [ Click on left or right to find the sheet with your name] According to the information on the Excel page (Question 2), answer the following questions: 1. What is the portfolio's expected return? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (stock A, B, C or D) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. 4. What is the expected return and variance of a portfolio invested 25% each in A, B, C and D? Will the resulting portfolio structure bring you a higher expected return? s. How should you change the shares of securities A, B, C and D in your portfolio in order to minimize risk and maximize expected returns? Explain your answers. * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. Question No 2. (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. [ Click on left or right to find the sheet with your name] According to the information on the Excel page (Question 2), answer the following questions: 1. What is the portfolio's expected return? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (stock A, B, C or D) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. 4. What is the expected return and variance of a portfolio invested 25% each in A, B, C and D? Will the resulting portfolio structure bring you a higher expected return? s. How should you change the shares of securities A, B, C and D in your portfolio in order to minimize risk and maximize expected returns? Explain your answers. * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. Question No 3. (Marks 4) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. Click on left or right to find the sheet with your name] According to the information on the Excel page (Question 3), answer the following questions: 1. Choose the best company to invest from a list of 10 companies in Excel page) based on dividend yield, capital gains yield and the required returns on your stocks (based on the dividend growth model). Calculate the required indicators and analyze the results. 2. What will be the share prices of the selected company in 4 years, considering the dividend growth model, if the required rate of return is 10%? * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. 0.12 IY CE You CF Year -550000 -S00000 rool MO 170000 2 201000 190000 110000 7040 00 90 170000 200 2 140000 11000 IT SU -50000 ICF - 150000 1 20000 2 90000 3 170000 41 2004 3 225000 140000 1 110001 3 90000 10 80000 11 - 10 Ques Raste of Return Stra Economy Probability of State of Farm Sack Sock Stock Sinck D Stock Dale invested A 30 124 Cioad Poor BESI bir ir 1998 - -2014 -5% 15% 35% B C D 2. 10,000 400 30.000 -29 Dale Tree DocuSign In By Inc Arts Exelen Common StoCom Canne Can Cerpen Stuck Sock Stock Common Stock Expedia Tesla, Inc. Group, Inc. CO Common Snack Stock The Kraft | Group Texas Instruments Heinz Increased Company American Como Stack Common Steck Deporter Shares 18.20 16.030.26.190 0. 140 650 210.500 1110197720 2295 37.340 67.00 1.908491 1.9% Stock price Growth rate DPS Dividend perluare paid anal divided EPS Lamp pershare 10.100 28.120 45702 12.MO 1.99117160207 402 12.070 3.110 22.300 17.170 211.14 7792 21.70 3.383.12.1722412478 30.519 528723.978 t Question No 1: (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. Click on left or right to find the sheet with your name] Al Balushi Oil Mohhamad Al Balushy the owner of Al Balushi Oil, is evaluating new oil production wells in Eastern part of Oman. Sara Al Farsi, the company's geologist, has just finished her analysis of the wells site. She has estimated that the well One would be productive for eight years, Two - nine years, Three- ten years. After which the oil will be fully produced. Sara has taken an estimate of the gold deposit to Zainab Al Amri, the company's financial officer. Sara asked Zainab to conduct an analysis of the new wells (One, Two and Three) and provide her recommendation on whether the company should open a new well and which project is better than others. Zainab has used the estimates provided by Sara to determine the revenues that could be expected from the wells. She has also projected the expenses of opening the wells and the annual operating expenses. If the company opens well, it will have certain large expenses for the purchase and installation of equipment, and at the end of the project the company will incur some expenses associated with the liquidation of the wells. The expected cash flows each year from the well for project Well One, Well Two and Well Three are shown in the tables. 3. 1. Calculate the payback period, modified internal rate of return (3 methods), net present value, profitability index of proposed projects. Determine which project is better and explain why. 2. Based on your analysis, explain what advantages and disadvantages of each method of evaluating investment projects has. If the company finds financial resources for the development of two wells, which two projects would you recommend. Provided that the required rate of return is reduced by 2% * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary * Do not delete anything from the Word file. *Write your answers after each question. * Be careful when rounding. Leave two decimal places. Question No 2. (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. [ Click on left or right to find the sheet with your name] According to the information on the Excel page (Question 2), answer the following questions: 1. What is the portfolio's expected return? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (stock A, B, C or D) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. 4. What is the expected return and variance of a portfolio invested 25% each in A, B, C and D? Will the resulting portfolio structure bring you a higher expected return? s. How should you change the shares of securities A, B, C and D in your portfolio in order to minimize risk and maximize expected returns? Explain your answers. * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. Question No 2. (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. [ Click on left or right to find the sheet with your name] According to the information on the Excel page (Question 2), answer the following questions: 1. What is the portfolio's expected return? 2. What is the variance of the portfolio and standard deviation? 3. If you have to choose only one type of securities (stock A, B, C or D) which one will you choose and why? To answer this question, you need to calculate the expected return for each stock and the standard deviation, and compare their values. 4. What is the expected return and variance of a portfolio invested 25% each in A, B, C and D? Will the resulting portfolio structure bring you a higher expected return? s. How should you change the shares of securities A, B, C and D in your portfolio in order to minimize risk and maximize expected returns? Explain your answers. * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. Question No 3. (Marks 4) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. Click on left or right to find the sheet with your name] According to the information on the Excel page (Question 3), answer the following questions: 1. Choose the best company to invest from a list of 10 companies in Excel page) based on dividend yield, capital gains yield and the required returns on your stocks (based on the dividend growth model). Calculate the required indicators and analyze the results. 2. What will be the share prices of the selected company in 4 years, considering the dividend growth model, if the required rate of return is 10%? * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary. * Do not delete anything from the Word file. * Write your answers after each question. * Be careful when rounding. Leave two decimal places. 0.12 IY CE You CF Year -550000 -S00000 rool MO 170000 2 201000 190000 110000 7040 00 90 170000 200 2 140000 11000 IT SU -50000 ICF - 150000 1 20000 2 90000 3 170000 41 2004 3 225000 140000 1 110001 3 90000 10 80000 11 - 10 Ques Raste of Return Stra Economy Probability of State of Farm Sack Sock Stock Sinck D Stock Dale invested A 30 124 Cioad Poor BESI bir ir 1998 - -2014 -5% 15% 35% B C D 2. 10,000 400 30.000 -29 Dale Tree DocuSign In By Inc Arts Exelen Common StoCom Canne Can Cerpen Stuck Sock Stock Common Stock Expedia Tesla, Inc. Group, Inc. CO Common Snack Stock The Kraft | Group Texas Instruments Heinz Increased Company American Como Stack Common Steck Deporter Shares 18.20 16.030.26.190 0. 140 650 210.500 1110197720 2295 37.340 67.00 1.908491 1.9% Stock price Growth rate DPS Dividend perluare paid anal divided EPS Lamp pershare 10.100 28.120 45702 12.MO 1.99117160207 402 12.070 3.110 22.300 17.170 211.14 7792 21.70 3.383.12.1722412478 30.519 528723.978 t Question No 1: (Marks 8) Use the data set which is labeled on your name in Excel sheet. Names are given alphabetical from A to Z. Click on left or right to find the sheet with your name] Al Balushi Oil Mohhamad Al Balushy the owner of Al Balushi Oil, is evaluating new oil production wells in Eastern part of Oman. Sara Al Farsi, the company's geologist, has just finished her analysis of the wells site. She has estimated that the well One would be productive for eight years, Two - nine years, Three- ten years. After which the oil will be fully produced. Sara has taken an estimate of the gold deposit to Zainab Al Amri, the company's financial officer. Sara asked Zainab to conduct an analysis of the new wells (One, Two and Three) and provide her recommendation on whether the company should open a new well and which project is better than others. Zainab has used the estimates provided by Sara to determine the revenues that could be expected from the wells. She has also projected the expenses of opening the wells and the annual operating expenses. If the company opens well, it will have certain large expenses for the purchase and installation of equipment, and at the end of the project the company will incur some expenses associated with the liquidation of the wells. The expected cash flows each year from the well for project Well One, Well Two and Well Three are shown in the tables. 3. 1. Calculate the payback period, modified internal rate of return (3 methods), net present value, profitability index of proposed projects. Determine which project is better and explain why. 2. Based on your analysis, explain what advantages and disadvantages of each method of evaluating investment projects has. If the company finds financial resources for the development of two wells, which two projects would you recommend. Provided that the required rate of return is reduced by 2% * You should describe each step in detail and provide intermediate calculations. Add tables from Excel if necessary * Do not delete anything from the Word file. *Write your answers after each question. * Be careful when rounding. Leave two decimal places