PQR Corporation forecasted its total funding requirements for the coming year as shown in the table below : (i) Month (iii) January February March April May June July August September October November December PQR Corporation was informed by its bank that short-term loans cost 5.0%p.a. and long-term loans cost 8.0%p.a.. Calculate the total cost of each of the following strategy: An aggressive funding strategy Total funding requirements (S$) 135,000 60,000 105,000 120,000 90,000 75,000 180,000 60,000 90,000 105,000 75,000 90,000 A conservative funding strategy (3 marks) (2 marks) Comment on the risk and return trade-off between the two strategies. What are the TWO risks involved in the higher-risk strategy? (3 marks)

PQR Corporation forceasted its total funding requirements for the coming year as shown in the table below : PQR Corporation was informed by its bank that short-term loans cost 5.0% p.a. and long-term loans cost 8.0% p.a. Calculate the total cost of each of the following strategy: (i) An aggressive funding strategy (3 marks) (ii) A conservative funding strategy (2 marks) (iii) Comment on the risk and retum trade-off between the two strategies. What are the TWO risks involved in the higher-risk strategy