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The dinner was exquisite and for Bodil her first encounter with one of the best restaurants in the world was a dream that came true.

The dinner was exquisite and for Bodil her first encounter with one of the best restaurants in the world
was a dream that came true. However at the end of the dinner Johannes mentioned that they would meet
with bankers at HSBC at 10AM to be presented with some investment opportunities and a car would come
and pick them up at 9:45AM sharp. Annie would not be a available as she was invited to a reception by
the prime minister Rishi Sunak.
Once at the bank Bodil god a number of investment opportunities to scrutinise. However before that a
two hour presentation of expected market conditions for 2024. Generally the expectations are that the chances
for a good year is 25%, 45% for normal and 30% for another poor year.
Two companies caught the interest of Johannes: Baldwin Windmills (BW) and Standard Saws (SS) both listed on
the London Stock Exchange. The amount to be invested by LF Plc is 20 000 000.
The expected return for BW is 7% for good market, 5% for normal and -1% for bad.
SS on the other hand would deliver a return of 16% in good market, 6% in normal and -10% in bad.
Johannes liked to have an analyse before dinner but thought that Bodil might be interested to listen to
a speech by this years Nobel price winner in economics Claudia Goldin. That was an easy pick and
she called you. Thanked you for your analyse you did during the night and asked you to make an analyse
of the opportunities and propose which to select and consider if there is a better alternative.
Good
Normal
Bad

answer in excel

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