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FIN2601 - Assessment 02 - 2023 - Distinction Review

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This document serves as a guide to help reflect on my review of Assessment 2 for FIN2601. This is purely for reflection purposes and shows my decisions on the answers to the assessment as well as the marks I obtained for each answer.

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Dashboard / My courses / FIN2601-23-S1 / Welcome Message / Assessment 2

Started on Saturday, 22 April 2023, 11:34 AM
State Finished
Completed on Tuesday, 25 April 2023, 8:09 PM
Time taken 3 days 8 hours
Marks 15.00/20.00
Grade 75.00 out of 100.00


Question 1
Correct

Mark 1.00 out of 1.00




The financial manager of Blackbelt Technologies wishes to determine the standard deviation from a proposed investment project. The
expected returns from the project are related to the future performance of the economy over the period, as follows:

Economic scenario Probability of occurrence Rate of return

Strong growth 0,25 15%

Moderate growth 0,50 12%

Low growth 0,25 8%



What is the standard deviation of the proposed investment project?




1. 
2,49%



2. 3,43%



3.
6,19%



4. 11,75%




Your answer is correct.

The correct answer is:


2,49%

,Question 2

Correct

Mark 1.00 out of 1.00


MENU

Tiny Legend Learning Academy believes the probability distribution, shown below, holds true for its shares.
Dashboard / My courses / FIN2601-23-S1 / Welcome Message / Assessment 2
State of the economy Probability of state Shares’ expected return
occurring

Strong growth 0,25 20%

Moderate growth 0,50 12%

Low growth 0,25 8%



What is the coefficient of variation on the corporation shares?




1.
0,23



2. 0,34 



3.
2,83



4. 4,36




Your answer is correct.
The correct answer is:
0,34

, Question 3

Correct

Mark 1.00 out of 1.00


MENU

You are considering investing in two securities, Omicron and Delta, and have the following information:
Dashboard / My courses / FIN2601-23-S1 / Welcome Message / Assessment 2
Security Probability Possible return

Omicron 0,4 16%

0,3 10%
0,3 2%

Delta 0,4 20%
0,3 12%

0,3 3%



You are required to calculate the expected return of a portfolio consisting of 40% Omicron and 60% Delta securities.




1. 4,0%



2.
7,5%



3. 11,5% 



4.
22,5%




Your answer is correct.
The correct answer is:

11,5%

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