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Maniz Berhad is considering investing RM10,000. The following information is the probability distribution of returns for Kuih Ketayap and Kuih Lapis. Probability Rate of returns
Maniz Berhad is considering investing RM10,000. The following information is the probability distribution of returns for Kuih Ketayap and Kuih Lapis. Probability Rate of returns (%) Project Kuih Ketayap Kuih Lapis -25 -10 2 18 14 0.1 0.2 0.4 0.3 40 19 From the above information you are required to: a. calculate the expected rate of return of each project. (4 Marks) b. assume that Maniz Berhad will be investing RM6,000 in Kuih Lapis project and RM4,000 in Kuih Ketayap project, determine the expected rate of return on the portfolio. (4 Marks) c. based on your calculation in part (a) and (b), advise Maniz Berhad on expected rate of return on individual project compared to portfolio. (2 Marks)
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