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QUESTION 17 Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters

QUESTION 17

  1. Single company Risk analysis

    Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Variance for company B

    possible outcome

    probability

    Rate of return

    Company A (%)

    Company B (%)

    Boom

    0.3

    50

    30

    Normal

    0.4

    25

    20

    recession

    0.3

    -10

    15

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