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Q1 - Project A may yield a return of 3m with a probability of 0.3, or a return of 5m with a probability of 0.7.
Q1 - Project A may yield a return of 3m with a probability of 0.3, or a return of 5m with a probability of 0.7. Project B may earn a negative return of 3m with a probability of 0.3 or a positive return of 9m with a probability of 0.7. Compare the mean return and risk of the projects. Q2 What is the holding-period return for a share which costs 5.50, was held for a year and then sold for 3.5, and which paid a dividend at the end of the holding period of 20p? Interpret the result
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