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solve Question 5 Brandmax a newly established Japanese based manufacturer of electronic goods is evaluating two overseas locations for a proposed expansion of production facilities
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Question 5 Brandmax a newly established Japanese based manufacturer of electronic goods is evaluating two overseas locations for a proposed expansion of production facilities at a site in Dar es Salaam and another in Arusha. The likely future from investment in each site depends to a great extent on economic conditions. Three scenarios are postulated and the internal rate of return from each investment is computed under each scenario. The return with their estimated probabilities are shown below Internal rate of Return (\%) There is zero correlation between the returns from two sites Required: I. Calculate the expected return and standard deviation from each investment in each location 11. Determine the expected return and the standard deviation of the following split investment strategies: 1. Committing 50% of available und to the site in Dar es Salaam and 50% to Arusha 2. Committing 75% of available funds to the site in Dar es Salaam and 25% to ArushaStep by Step Solution
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