Discuss whether the standard deviation of a portfolio is, or is not, a weighted average of the standard deviations of the assets in the portfolio Explain your answer 2 How does opportunity cost affect an investor's required rate of return 3 Discuss the two components of a portfolios risk that has been used to measure a firm's market risk 4 Calculate the following for each projects Expected return Variance and standard deviation Coefficient of variation Rahim Ahmad Berhad, a robotic manufacturing company is considering two projects , Naseem and Seeba both of which cost RM50,000 The forcasted returns from the projects are as follows Naseem Robot Seeba Robot Probability Return Probability Return Pessimistic 0 30 35 0 35 20 Most likely 0 50 25 0 50 25 Optimistic 0 20 30 0 15 40 Answer the following questions based on the given scenario

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.Discuss whether the standard deviation of a portfolio is, or is not, a weighted average of the standard deviations of the assets in the portfolio.

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.Discuss whether the standard deviation of a portfolio is, or is not, a weighted average of the standard deviations of the assets in the portfolio. Explain your answer.

2.How does opportunity cost affect an investor's required rate of return?

3.Discuss the two components of a portfolios risk that has been used to measure a firm's market risk.

4.Calculate the following for each projects

Expected return
Variance and standard deviation
Coefficient of variation

Rahim Ahmad Berhad, a robotic manufacturing company is considering two projects , Naseem and Seeba both of which cost RM50,000. The forcasted returns from the projects are as follows: Naseem Robot Seeba Robot Probability Return % Probability Return % Pessimistic 0.30 35 0.35 20 Most likely 0.50 25 0.50 25 Optimistic 0.20 30 0.15 40 Answer the following questions based on the given scenario