Business > CASE STUDY > FINC300 Week5 HW.docx FINC300 Week 5: Homework FINC300 ENI is an oil industry compa (All)
FINC300 Week5 HW.docx FINC300 Week 5: Homework FINC300 ENI is an oil industry compa
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FINC300 Week5 HW.docx FINC300 Week 5: Homework FINC300 ENI is an oil industry company. Based on the data provided in chapter 18 and 19, exercise one and two on page 325 and 343, the absolute ri... sk of ENI share is 4.59% and the expected return is 2.2%. On the other hand, the Italian Index is an index for the Italian market; the anticipated return is 0.7%, and the risk is 7.35%. Based on the information above, we can conclude it is preferable not to invest in ENI due to the high-risk factor even though its ROI is high. However, investing in the Italian Index could lower the risk due to being well-diversified portfolio securities. "....investment to gain insights into the actual amount of risk associate." (Therefore, by investing in a dissimilar business, you can smooth them all out. In conclusion, the choice will become the investment portfolio and what they can afford to risk. exercise 2: Lowering the sta. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]
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