21 Jun Holefoods plc wan
Holefoods plc wants to invest £1,500,000 for a three-year period. Inflation is currently 1.5% per…
Holefoods plc wants to invest £1,500,000 for a three-year period. Inflation is currently 1.5% per annum and is expected to remain at this rate for the foreseeable future. The choice is between two possible investments. Over recent years, the frequency distribution of the actual returns achieved by the two investments has been observed, but there is no information available about the correlation between the two investments.
Investment R
| Annual rate of return | Probability |
| 8% | 22% |
| 10% | 28% |
| 12% | 24% |
| 14% | 26% |
Investment S
| Annual rate of return | Probability |
| 1% | 40% |
| 9% | 12% |
| 18% | 8% |
| 35% | 40% |
· i.Calculate the expected rate of return and the standard deviation of the expected return for each of the investments. (6 marks)
· ii.Advise Holefoods how to choose between the two investments. Should Holefoods give any consideration to splitting their investment between the two investments? Justify your recommendation. (8 marks)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.