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FIN2601 Assignment 2 (QUIZ) Semester 2 2024

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FIN2601 Assignment 2 (COMPLETE QUESTIONS & ANSWERS) Semester 2 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Question 1 Complete Mark 1.00 out of 1.00 QUIZ The financial manager of Su...

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  • August 20, 2024
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FIN2601
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 2024

, Question 1

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
o Recession: Probability of occurrence: 0.1, Rate of return: 20%
o Normal: Probability of occurrence: 0.6, Rate of return: 13%
o Boom: Probability of occurrence: 0.3, Rate of return: 17%

What is the standard deviation of the proposed investment project?

1. 7,07%
2. 10,45%
3. 15,81%
4. 18,67%

Answer: 2. 10,45%

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