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QUESTION TWO [20 MARKS] Mr. Mulaudzi is considering two independent investments, and can only invest in either the shares of Midvall Steel Ltd or Masego

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QUESTION TWO [20 MARKS] Mr. Mulaudzi is considering two independent investments, and can only invest in either the shares of Midvall Steel Ltd or Masego Group Ltd. The following information regarding returns and probability distributions on return is relevant: Midvall Steel Ltd Probabilities 0.20 0.60 0.20 Returns% 10 15 20 Masego Group Ltd Probabilities 0.20 0.30 0.30 0.20 Returns % 0 10 20 30 888 31 Page CMABO21 ASSESSMENT OPPORTUNITY 1 ONLINE 2022 REQUIRED Calculate expected returns, standard deviation and coefficient of variation for both Midvall Steel Ltd and Masego Group Ltd shares, and indicate with reasons, the share you recommend? Communication: Presentation and logic [19]

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