DO READ AND FOLLOW THE ABOVE INSTRUCTIONS BEFORE YOU START ANSWERING THE QUESTIONS. THANK YOU FOR KIND UNDERSTANDING, Question 1 You are required to answer the following questions: a. Project Mata Air is forecasted to produce the following: a 30% probability of 11% return; a 40% probability of a 15% return; and a 30% probability of 19% return. What is the expected rate of return (ka) for this project? (2 marks) b. Project Air Mata is forecasted to produce the following: a 20% probability of 5% loss; a 30% probability of a 6% retum; and a 50% probability of 22% return. What is the expected rate of return (k^) for this project? (2 marks) C. From your answer in part (a) and (b), compute the standard deviation () for each project. (3 marks) d. You need to decide to only invest in ONE project. Based on your findings from part (a), (b) and (c), which project that you will be investing to? Explain your answer. (3 marks) (Total: 10 marks) Question 2 You have just won a "Game On Competition 2021" conducted by Majlis Perbandaran Kajang You now have a choice between three alternatives. You can get RM100,000 now, or RM10,000 per year in perpetuity, or RM50,000 now and RM150,000 at the end of 10 years. Given the appropriate discount rate is 12%. Based on those alternatives, which ONE should you choose? [Hint: you need to support your answer by showing relevant workings) (5 marks) *** end of questions 104