Started on Tuesday, 6 August 2024, 12:07 PM
State Finished
Completed on Monday, 12 August 2024, 2:58 PM
Time taken 6 days 2 hours
Marks 18.00/20.00
Grade 90.00 out of 100.00
Question 1
Your grandmother's portfolio is structured with 40% of her funds allocated to Transatlantic
Complete Transaction and the remaining 60% invested in Treasury Bills. This allocation strategy
Mark 1.00 out reflects a balance between potential returns and risk mitigation, aligning with her investment
of 1.00 objectives and risk tolerance. The investment broker overseeing your grandmother's
Flag portfolio has furnished pertinent details to help in strategic decision-making:
question
Portfolio Probability Possible return
Transatlantic Transaction 0,6 − − 20%
0,3 15%
0,1 30%
Moderated Mediums 0,6 14%
0,3 12%
0,1 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 2
The financial manager of Summer Financial Group is tasked with evaluating the standard
Complete
deviation of a proposed investment project. This analysis aims to provide insights into the
Mark 1.00 out potential risk associated with the project's expected returns, which are linked to the future
of 1.00 performance of the economy over a specific period as follows:
Flag
question
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 3
A company has the opportunity to invest in one of three possible investments. The financial
Complete
analysts predict the following possible outcomes for the three investments:
Mark 1.00 out
of 1.00 Outcome Probability Investment C: Investment D: Investment E:
Flag Expected return Expected return Expected return
question
Pessimistic 30% 2% 8% 6%
Most likely 40% 10% 10% 8%
Optimistic 30% 18% 12% 11%
Calculate the range of returns for the three investments.
1.
Range of outcomes: C 8%; D 2%; E 3%
2. Range of outcomes: C 20%; D 20%; E 17%
3. Range of outcomes: C 1%; D 2%; E 3%
4.
Range of outcomes: C 16%; D 4%; E 5%
Question 4
Asher Investment Fund, a diversified investment entity, currently has a total capital of R100
Complete 000 allocated across three distinct shares. The returns on these shares vary, reflecting the
Mark 1.00 out different risk profiles and market positions of each investment. The fund's capital is
of 1.00 distributed as follows:
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