As a security analyst at Milimani Limited, you are conducting an analysis of four alternative investment...

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As a security analyst at Milimani Limited, you are conducting an analysis of four alternative investment projects. Each project has a holding period of one year. The estimated rates of return for four alternative states of the economy are shown in the table below: State of the Probability of each state Rate of return if state occurs economy Recession Average occurring 0.2 0.6 A (%) B (%) C (%) D (%) 10 6 22 15 Boom 0.2 10 11 14 15 10 31 -4 25 Required: i) Assess the total risk of the four investment alternatives. ii) Applying mean-variance criterion, determine whether any of the four alternative projects can be eliminated giving your reasons for your answer iii) After performing the proceeding analysis, you realize that the entire risk analysis was based on the total risk of the proposed alternatives. You believe it is appropriate to perform a market risk analysis. Alternative 'D' is a broadly diversified mutual fund, so 'D' can be used as proxy for the market. Find the beta of each alternative investment opportunities. As a security analyst at Milimani Limited, you are conducting an analysis of four alternative investment projects. Each project has a holding period of one year. The estimated rates of return for four alternative states of the economy are shown in the table below: State of the Probability of each state Rate of return if state occurs economy Recession Average occurring 0.2 0.6 A (%) B (%) C (%) D (%) 10 6 22 15 Boom 0.2 10 11 14 15 10 31 -4 25 Required: i) Assess the total risk of the four investment alternatives. ii) Applying mean-variance criterion, determine whether any of the four alternative projects can be eliminated giving your reasons for your answer iii) After performing the proceeding analysis, you realize that the entire risk analysis was based on the total risk of the proposed alternatives. You believe it is appropriate to perform a market risk analysis. Alternative 'D' is a broadly diversified mutual fund, so 'D' can be used as proxy for the market. Find the beta of each alternative investment opportunities.