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Read and attempt questions below Your uncle, David, a retiree aged 6 7 , has approached you for advice on which stock to invest in
Read and attempt questions below
Your uncle, David, a retiree aged has approached you for advice on which stock to invest in His friend has suggested that he invests in stock of FirstRand Namibia Limited, stock Code FNB Mediclinic International plcstock code MEP and Oceana Group LtdStock Code OCG The returns on various stocks depend of the economic conditions prevailing in postCovid Namibia.
Economic conditions may be classified into excellent, good and bad. The impact on performance of stock depend on the industry in which the company is Market indications are there is a probability the economic conditions will excellent, and a chance conditions will be good. The likely returns of each of the stock of the above three companies under different excellent, good and bad states of economic conditions are FirstRand Namibia FNB stock and Oceana OCG stock and and Mediclinic MEP stock and respectively. David has a capital budget of N$ which he plans to spend all in one stock investment or in a portfolio made up of Oceana stock, Mediclinic stock, and rest on FNB stock.
Based on the question scenario, calculate the following:
a Return on FNB stock
b Risk associated with Oceana stock
c Portfolio return
d Portfolio risk
Use column to show all the calculations
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