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QUESTION 1: (25 Marks) a) Miss Suha was inherited some of her parent's fortune. She plans to invest some funds to generate income. There are

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QUESTION 1: (25 Marks) a) Miss Suha was inherited some of her parent's fortune. She plans to invest some funds to generate income. There are three investment options and all information as stated below: SM Oil & Fats Berhad Symphony Capetiusse Akar Bumi Berhad Berhad Probability Rate of Probability Rate of Probability Rate of Return Return Return 0.60 9.00% 0.10 -5.00% 0.20 1.00% 0.30 10.00% 0.50 45.00% 0.30 25.00% 32.00% 0.10 15.00% 0.40 25.00% 0.50 Based on the given information, you are required to calculate the following for each company: i) Expected rate of return (R). (6 Marks) ii) Compute the variance. (6 Marks) iii) Find the standard deviation(o). (9 Marks) iv) Choose the best company and support your answer based on answers above. (4 Marks)

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