FIN2601 Assignment 1 Semester 1 2024

3/12/24, 3:24 PM Assessment 2 (page 1 of 3)




FIN2601-24-S1  Welcome Message  Assessment 2

QUIZ




Question 1

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Le Panier French Bakery, a cupcake
business, has recorded the following
returns over the last four years:

Year Return

2020 —3,5%

2021 —5,0%

2022 65%

2023 13,7%



What is the average return on the
company’s shares?


1. 17,6%

2. 18,8%
3. 56,5%

4. 70,2%

Clear my choice




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, 3/12/24, 3:24 PM Assessment 2 (page 1 of 3)

Question 2

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Two shares, Canva and Green Tone have
been identi ed by Tristan as potential
investments. He has estimated the
performance of the returns on these two
shares under each of the following
economic conditions as follows:

Possible Probability Rate of return
outcome
Canva Green
Tone

Pessimistic 0,15 —2,0% 5,0%

Most likely 0,65 9,2% 6,2%

Optimistic 0,20 15,4% 7,4%



You are required to calculate the
standard deviation for these two shares.


1. Canva = 7,53%; Green Tone =
6,26%

2. Canva = 5,13%; Green Tone =
0,71%

3. Canva = 21,88%; Green Tone =
31,00%

4. Canva = 26,60%; Green Tone =
9,00%

Clear my choice




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