Distinguish between systematic risk and unsystematic risk giving three

examples of each $(3$ Marks$)$

Amber Limited has been formed to undertake Investments opportunities in a

portfolio made up of two projects B and C$.$ The probability distribution and the

returns of the two projects are given below

Probability Project Returns

B C

$0\mathrm{.}314\%13\%$

$0\mathrm{.}520\%7\%$

$0\mathrm{.}215\%5\%$

Amber has invested $60\%$ of his resources in Project B and $40\%$ in Project C

Required

a$)$ Determine the expected Return of projects B & C $(4$ Marks$)$

b$)$ Calculate the standard deviation of each project $(4$ Marks$)$

c$)$ Calculate coefficient of Variation of each project $(2$ Marks$)$

d$)$ Which project will you prefer and why $(2$ Marks$)$