PART 2 the Voluation of Financial Assate 6-4. (Expetel rate of return and risk) Donna, a chartered financial analyst in Londe United Kingdom, is wanting to invest in securities listed on the Alternative Investment Market (AIM) which is the London Stock Exchange's sub-market that is designed to help smaller growing companies. She collects information on two different companies (providesd below) from the London Stock Exchange. Given the probability distribution for the economic state of the country, which stock would you advise Donna to invest in ASTRATECH PLC ALPHA BIOTECH PLE RETURN PRONARILITY RETURN ECONOMIC STATE PROBALITY 0.30 4% Necessim 0.20 8% 0.40 9% Normal 050 12% 0.30 16% 0.30 18% d neturns for Te

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
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PART 2. The Voluation of Financial Assate
ASTRATECH PLC
ALPHA BIOTECH PLE
PRONARILITY
RETURN
ECONOMIC STATE
PROBALITY
RETUNN
0.30
4%
Recessim
0.20
8%
12%
0.40
9%
Nomal
0 50
Boom
18%
0.30
16%
0.30
ies and returns for Tenaga
Transcribed Image Text:PART 2. The Voluation of Financial Assate ASTRATECH PLC ALPHA BIOTECH PLE PRONARILITY RETURN ECONOMIC STATE PROBALITY RETUNN 0.30 4% Recessim 0.20 8% 12% 0.40 9% Nomal 0 50 Boom 18% 0.30 16% 0.30 ies and returns for Tenaga
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