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%
