Investment analysis portfolio management

It is process to determine the current worth of company

FMG is recommended because it has high market value, return on equity is much higher than OZ Minerals, sustainable growth rate is also higher than the OZ Minerals and Intrinsic value is also higher than its market value.

Intrinsic value of OZ Mineral is lower than its market value

Risk refers to the deviation in the actual return of the stock from the expected return

Risk and its type

Unsystematic risk also known as specific risks or residual risk (Moles and Kidwekk, 2011)

Recommendation to potential investor

References

Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson.