Page 65 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 65 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629The standard deviation of the overall firm if the new project is in the U.S is =%u221a0.025= 0.158The variance of the firm overall if the new project is in Egypt is:Var (Rp) = (.6)2(15%)2 + (.4)2(20%)2 +2(.6) (.4) (15%)(20%)(.20) = 0.017The standard deviation of the overall firm if the new project is in Egypt is =%u221a0.017 = 0.132%uf06c Thus, as a whole, the multinational corporation will generate more stable returns if the new project is in Egypt.The portfolio performance for the firm overall:%uf06c Sharpe Ratio for the expected portfolio if the new project is in the U.S is:= Rp%u2212Rf = 20%- 5% = 0.95%u03c3p 0.158%uf06c Sharpe Ratio for the expected portfolio if the new project is in the U.S is:= Rp%u2212Rf = 20%- 5% = 1.14%u03c3p 0.127Thus, as a whole, the multinational corporation will generate more Portfolioperformance if the new project is in Egypt.