FIN2601 ASSIGNMENT 1 2025
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF FIN2601.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
, FIN2601 ASSIGNMENT 1 2025
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
email
Question 1
1.1 Calculate the expected return for both VanillaFridge and IcebergsFoam
investment projects. (6 marks)
The expected return (r̄ ) for an investment project is calculated as the sum of each
possible outcome's return multiplied by its probability of occurrence.
The formula used is: 𝒓̄ = 𝜮 (𝒓̄𝒋 × 𝑷𝒓̄𝒋 )
Where
𝒓̄𝒋 is the return for the jth outcome and
𝑷𝒓̄𝒋 is the probability of its occurrence.
For VanillaFridge
Recession: (−0.15) × 0.20 = −0.03
Normal: (0.20) × 0.50 = 0.10
Boom: (0.60) × 0.30 = 0.18
Expected return for VanillaFridge
= −𝟎. 𝟎𝟑 + 𝟎. 𝟏𝟎 + 𝟎. 𝟏𝟖 = 𝟎. 𝟐𝟓 𝒐𝒓̄ 𝟐𝟓%.
For IcebergsFoam
Recession: (0.20) × 0.20 = 0.04
Normal: (0.30) × 0.50 = 0.15
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF FIN2601.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
, FIN2601 ASSIGNMENT 1 2025
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
Question 1
1.1 Calculate the expected return for both VanillaFridge and IcebergsFoam
investment projects. (6 marks)
The expected return (r̄ ) for an investment project is calculated as the sum of each
possible outcome's return multiplied by its probability of occurrence.
The formula used is: 𝒓̄ = 𝜮 (𝒓̄𝒋 × 𝑷𝒓̄𝒋 )
Where
𝒓̄𝒋 is the return for the jth outcome and
𝑷𝒓̄𝒋 is the probability of its occurrence.
For VanillaFridge
Recession: (−0.15) × 0.20 = −0.03
Normal: (0.20) × 0.50 = 0.10
Boom: (0.60) × 0.30 = 0.18
Expected return for VanillaFridge
= −𝟎. 𝟎𝟑 + 𝟎. 𝟏𝟎 + 𝟎. 𝟏𝟖 = 𝟎. 𝟐𝟓 𝒐𝒓̄ 𝟐𝟓%.
For IcebergsFoam
Recession: (0.20) × 0.20 = 0.04
Normal: (0.30) × 0.50 = 0.15
