a)The company is considering three projects. Project Beta returns are expected to be negative OMR 1 Million, for this probability is 0.35 and 0.65 is the probability that project earns a return of OMR 4 Million. The project Gamma also in the consideration of the company for that company has certain return of OMR 1 million. The return on project Alpha is OMR 1 Million with a probability of 0.25 or a return of OMR 2 Million with a probability of 0.75. Compare the mean return and risk of the projects.

b) Thecompanyisconsideringaboutprobabilityofinsolvencyforoneofitsproject.You have to calculate the probability of insolvency with following information The returns from a project are normally distributed with a mean of OMR 660,000 and a standard deviation of OMR 480,000. If the project loses more than OMR 240,000 the company will be made insolvent.