Question: Export PDF (c) Create PDF FMB reinforces the potential for solar energy is very high in many Southeast Asian countries yet the markets remain largely

 Export PDF (c) Create PDF FMB reinforces the potential for solar

Export PDF (c) Create PDF FMB reinforces the potential for solar energy is very high in many Southeast Asian countries yet the markets remain largely untapped. The management of FMB has decided to invest RM20 million in two projects at two neighbouring countries with RM9 million to be allocated in Alpha' project of Country A and the remaining balance in 'Omega' project of Country B. The following are the relevant data of these two projects: Edit PDF Adobe Acrobat Pro Easily edit text and images in documents Project Expected return Standard deviation Beta Alpha 120 16% 0.8 Omega 22% 19 1.5 Start Now Required: Combine PDF Send Files If the two projects are mutually exclusive, justify which project should FMB invest with coefficient of variation (CV). (5 marks) Store Files Determine the expected return and standard deviation of the investment consisting of these two projects, given the correlation is 0.2 between the return of these two projects. (5 marks) This final assessment paper consists of 2 questions on 6 printed pages. Type here to search 629 33C 231 PM 9/17/2021

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