Question
a) Hamelton ltd has following information of two investment project, Apex (A) and Bata (B). Probability Distribution .10 .20 .40 .20 .10 Cash flow of
a) Hamelton ltd has following information of two investment project, Apex (A) and Bata (B).
| Probability Distribution | .10 | .20 | .40 | .20 | .10 |
| Cash flow of project A | 13000 | 13500 | 14000 | 14500 | 15000 |
| Cash flow of project B | 12000 | 13000 | 14000 | 15000 | 16000 |
You are required to calculate
i) Expected return
ii) Standard Deviation
iii) Co-efficient of variance.
iv) Comments which one is risky and why?
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Problems In Portfolio Theory And The Fundamentals Of Financial Decision Making
Authors: Leonard C Maclean, William T Ziemba
1st Edition
9814749931, 978-9814749930
