QUESTION FIVE (20 Marks) 5.1 Revenue grew 11% in the year to end-December 2018, but the private education group Advtech (10 marks) warns that trading conditions in SA remain tough. The group's student base grew 11% in the year to end-December, but the company noted this was primarily due to its expansion strategy. Tough trading conditions had prompted a drop-off of upfront fee payments from parents, who were also increasingly delaying payments. The results were somewhat lacklustre, and enrolment growth had been subdued for both AdvTech and its rival Curro over the past 18 months, said Mergence Investment Managers equity analyst Nolwandle Mthombeni. AdvTech said on Monday that operating profit in the year to end-December rose a healthy 14% to R763m, boosted by a strong performance by the group's tertiary operations. Operating profit from its university segment grew 23% to R395m and group revenue 11% to R4.4bn to end-December. Operating profit from its schools' division inched up 1% year on year. The company decreased its dividend 12% to 300 compared with the corresponding period in 2017, noting that it was seeking to preserve cash due to its expansion strategy 2022 Forecast State Probablity Advtech Tresuary bills Boom 0,4 0,28 0,07 Normal 0.5 0,24 0,06 Recesson 0,6 0,19 0,05 In light of this background calculate the expected retum in 2022 of a portfolio consisting of 40% invested in treasury bills and 60% in Advtech shares