Part A

Please answer in typing, include all formulas and calculations.

a. Puan Bunga Tanjung, is going to invest all her funds in one of three projects with the following distribution of possible returns: Project Hitam Project Putih Project Kelabu Probability Rate of Probability Rate of Probability Rate af return return retum 0.30 40% 0.10 2% 0.50 20% 0.40 10% 0.40 11% 0.50 0.30 -20% 0.50 10% Based on the above information calculate each project's expected rate of retum, standard deviation, and coefficient variation. From the calculations, which one of project is the better choice for Puan Bunga Tanjung? Explain your answer. (6 Marks) b. Using the information in part (a), suppose Plan Bunga Tanjung has RM5,000 total. If she allocates RM1,000 in Project Hitam RM2.000 in Project Putih and the remainder in Project Kelabu, compute the expected rate of return for her portfolio. (4 Marks) (Total: 10 Marka) -End of