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Question 1 (23) As the financial manager of a company, you have to provide the management of the company with relevant information about an investment
Question 1 (23) As the financial manager of a company, you have to provide the management of the company with relevant information about an investment project which they are considering. They have provided you with the following information: Possible outcomes Pessimistic Most likely Optimistic Probability 20% 45% Return 8% 12% 15% 35% Additional information: You must use the formulas provided in the textbook to answer these questions. Do not use the functions of a financial calculator. Calculate to two decimal values for questions 1.2 and 1.3. Note: The calculations involve calculating with percentage values. Required 1.1 Calculate the range of the returns for this investment. 1.2 Calculate the standard deviation of returns for this investment 1.3 Calculate the coefficient of variation of returns for this investment. (4) (15) (4)
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