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Fin2601 Assignment 2 2022

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Contains solutions for assignment 2 of Semester 1 (2022). All calculations are provided and can be useful for revisions.

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  • April 8, 2022
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FIN2601 ASSIGNMENT 2 2022

,Workings
Expected return = (0.60 x 35) + (0.25 x 15) + (0.15 x 7) = 25.8%




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, Workings
Standard deviation
CV = Expected return

35+28+(−10)
Average return = = 17.67%
3

Ri R (Ri – R) (Ri − R)2
2021 35 17.67 17.33 300.3289
2020 28 17.67 10.33 106.7089
2019 -10 17.67 -27.67 765.6289
Total 1172.666700


1172.6667
Standard deviation = √ = 24.21% to 2 dp
3−1

24.21
Therefore, CV = 17.67 = 1.37




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