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FIN2601 ASSESSMENT 2 2024 SEMESTER 2 High Energy Electric announced today that it will start paying annual dividends next year. The rst dividend will be R1,23 per share. The dividends for the next four years will be R1,15, R1,20, R1,50, and R1,60 per sh CA$4.00   Add to cart

Exam (elaborations)

FIN2601 ASSESSMENT 2 2024 SEMESTER 2 High Energy Electric announced today that it will start paying annual dividends next year. The rst dividend will be R1,23 per share. The dividends for the next four years will be R1,15, R1,20, R1,50, and R1,60 per sh

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FIN2601 ASSESSMENT 2 2024 SEMESTER 2 High Energy Electric announced today that it will start paying annual dividends next year. The rst dividend will be R1,23 per share. The dividends for the next four years will be R1,15, R1,20, R1,50, and R1,60 per share, respectively. After this period, divi...

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  • August 9, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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FIN2601-24-S2  Welcome Message  Assessment 2

QUIZ




Started on Friday, 9 August 2024, 1:44 PM
State Finished
Completed on Friday, 9 August 2024, 1:50 PM
Time taken 5 mins 19 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00


Question 1
Complete

Mark 1.00 out of 1.00




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 −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%

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