Q$.$No$\mathrm{.}1.$

Assuming that the rates of return associated with a given asset investment are normally distributed and that the expected return, $k,$ is $18\mathrm{.}9\%$ and the coefficient of variation, $CV,$ is $\mathrm{.}75,$ answer the following questions.

a$.$ Find the standard deviation of returns, $k.$

b$.$ Calculate the range of expected return outcomes associated with the following probabilities of occurrence: $(1)68\%,(2)95\%,(3)99\%.$

c$.$ Draw the probability distribution associated with your findings in parts a and b$.$

d$.$ What does a plot of the probability distribution of outcomes show a decision maker about an asset's risk? When is the coefficient of variation preferred over the standard deviation for comparing asset risk?

e$.$ How to find portfolio return?

Q$.$ No$.2$

For each of the projects shown in the following table, calculate the internal rate of return $($IRR$).$ Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

$\backslash$table$[[,$Project A$,$Project B$,$Project C$,$Project D$],[$Initial investment $($CF$0),$$$90,000,$$$490,000,$$$20,000,$$$240,000$