FIN2601
ASSIGNMENT 2
FIRST SEMSTER 2023
BY: MTHOMBENI: 0767297208
1
, Question 1
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%
Clear my choice
Question 2
Tiny Legend Learning Academy believes the probability distribution, shown below, holds true for its
shares.
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?
2
ASSIGNMENT 2
FIRST SEMSTER 2023
BY: MTHOMBENI: 0767297208
1
, Question 1
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%
Clear my choice
Question 2
Tiny Legend Learning Academy believes the probability distribution, shown below, holds true for its
shares.
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?
2
