The following information relates to Oman Telecommunications Companys stock. Economic state Probability Return Prosperous 20% 30% Standard 50% 10% Decline 20% (10%) Recession 10 % (30%) Instructions:

a. Appraise Oman Telecommunications expected return.

b. Assess the risk of Oman Telecommunications stock.

c. If investment in Oman Cables is expected to have a return of 10% and estimated risk of 5%, explain which company would be a better investment opportunity; Oman Telecommunications Company or Oman Cables?