FIN3701 Assignment 2 COMPLETE ANSWERS) Semester 2 2024 (232193) - DUE 16 September 2024
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, FIN2601 Assignment 2 COMPLETE ANSWERS) Semester
2 2024 - DUE September 2024 ; 100% TRUSTED Complete,
trusted solutions and explanations.
Question 1 Complete Mark 1.00 out of 1.00 QUIZ The financial
manager of Summer Financial Group is tasked with evaluating
the standard deviation of a proposed investment project. This
analysis aims to provide insights into the potential risk
associated with the project's expected returns, which are linked
to the future performance of the economy over a specific period
as follows: Economic scenario Probability of occurrence Rate of
return Recession 0,1 20% Normal 0,6 13% Boom 0,3 17% What
is the standard deviation of the proposed investment project? 1.
7,07% 2. 10,45% 3. 15,81% 4. 18,67% − Question 2 Complete
Mark 1.00 out of 1.00 Your grandmother's portfolio is structured
with 40% of her funds allocated to Transatlantic Transaction and
the remaining 60% invested in Treasury Bills. This allocation
strategy reflects a balance between potential returns and risk
mitigation, aligning with her investment objectives and risk
tolerance. The investment broker overseeing your grandmother's
portfolio has furnished pertinent details to help in strategic
decision-making: Portfolio Probability Possible return
Transatlantic Transaction 0,6 0,3 0,1 20% 15% 30% Moderated
Mediums 0,6 0,3 0,1 14% 12% 30% You are required to
calculate the expected return of your grandmother's portfolio. 1.
2,96 2. 4,54% 3. 7,20% 4. 12,50% − − Question 3 Complete
Mark 1.00 out of 1.00 Asher Investment Fund, a diversified
investment entity, currently has a total capital of R100 000
allocated across three distinct shares. The returns on these shares
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