Mr. Fadi, the finance manager at Nizwa University, approachedyou to advise him where to invest the..

Mr. Fadi, the finance manager at Nizwa University, approachedyou to advise him where to invest the extra O.R 1,000,000 that willbe needed after 5 years from now to start phase three ofconstruction. Mr. Fadi surveyed the market for potential investmentopportunities and came up with the following. • 4% Time depositcompounded quarterly at Bank Muscat. • A portfolio in Muscat StockMarket with expected return of 6%; however the investment isexpected to be liquidated after 5 years with a loss of 2%. • Soharport is issuing 5-year bond, O.R 1,000 par value and 7% semiannualcoupon payments. Market interest rate for similar asset is 6% Mr.Fadi aims to get the highest possible return from the investment.Instructions: Analyze each of the aforementioned investmentopportunities and draft a two-paragraph report explaining therational in where to invest the O.R 1,000,000.

 

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