FIN2601
Assignment 2
COMPLETE
ANSWERS)
Semester 2
2024
[Type the document subtitle]
, [Pick the date]
[Type the company name]
)
Book
Financial Management
FIN2601 Assignment 2 COMPLETE ANSWERS) Semester 2 2024 - DUE
September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations.
. Question 1 Complete Mark 1.00 out of 1.00 QUIZ 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 0,3 0,1 20% 15% 30% Moderated Mediums 0,6 0,3 0,1 14%
12% 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% − − Question 3
Complete Mark 1.00 out of 1.00 Asher Investment Fund, a diversified
investment entity, currently has a total capital of R100 000 allocated across
three distinct shares. The returns on these shares vary, reflecting the different
risk profiles and market positions of each investment. The fund's capital is
distributed as follows: Shares Return Invested A 14,5% R60 000 B 9,2% R25
000 C 15,4% R15 000 The current risk-free rate stands at 5%, and market
Assignment 2
COMPLETE
ANSWERS)
Semester 2
2024
[Type the document subtitle]
, [Pick the date]
[Type the company name]
)
Book
Financial Management
FIN2601 Assignment 2 COMPLETE ANSWERS) Semester 2 2024 - DUE
September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations.
. Question 1 Complete Mark 1.00 out of 1.00 QUIZ 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 0,3 0,1 20% 15% 30% Moderated Mediums 0,6 0,3 0,1 14%
12% 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% − − Question 3
Complete Mark 1.00 out of 1.00 Asher Investment Fund, a diversified
investment entity, currently has a total capital of R100 000 allocated across
three distinct shares. The returns on these shares vary, reflecting the different
risk profiles and market positions of each investment. The fund's capital is
distributed as follows: Shares Return Invested A 14,5% R60 000 B 9,2% R25
000 C 15,4% R15 000 The current risk-free rate stands at 5%, and market
