In: Finance
You have been approached by one of your clients to give him an investment advice regarding his investment portfolios. He has divided equally his RM500k into two investment portfolios: A and B for five (5) years period. The expected future net cash flows are given in percentage as shown in the table below.
Year |
Investment A (RM) |
Investment B (RM) |
0 |
Initial Capital (250,000) |
Initial Capital (250,000) |
1 |
40% |
42% |
2 |
32% |
34% |
3 |
28% |
16% |
4 |
16% |
24% |
5 |
10% |
28% |
TOTAL CASH INFLOWS |
RM? |
RM? |
You are required to;