Question: Question 34 (5 points) MTR Mining is considering a new investment in China. Initial estimates the investment returns have revealed the following: Probability Return -12.00%

Question 34 (5 points) MTR Mining is considering a new investment in China. Initial estimates the investment returns have revealed the following: Probability Return -12.00% 20.00% 35.00% 37.00% The company's board of directors has determined that the project requires a risk premium of 18% per annum. The risk-free rate is 5.5% pu annum and the company has a beta coefficient of 1.0. a. Using the information provided in the table above, calculate the expected risk and return of the new project. (2 marks each)

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