QUESTION 4 Murni Selasih Bhd is considering investing in a project that will generate higher returns...

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QUESTION 4 Murni Selasih Bhd is considering investing in a project that will generate higher returns Currently, the company has two projects with forecasted outcomes under consideration. The possible returns and related probabilities are given below: State of Probability Forecasted Economy Return Project 1 Project 2 Optimistic 0.45 20% 18% Normal 0.35 15% 25% Pessimistic 0.20 5% -5% a. State the expected return of each project. b. Identify the the standard deviation each project. (4 marks) (3 marks) c. Being a risk-taker firm, analyze which project Murni Selasih Bhd should choose. (3 marks) d. Explain briefly any TWO (2) types of returns. (4 marks) QUESTION 4 Murni Selasih Bhd is considering investing in a project that will generate higher returns Currently, the company has two projects with forecasted outcomes under consideration. The possible returns and related probabilities are given below: State of Probability Forecasted Economy Return Project 1 Project 2 Optimistic 0.45 20% 18% Normal 0.35 15% 25% Pessimistic 0.20 5% -5% a. State the expected return of each project. b. Identify the the standard deviation each project. (4 marks) (3 marks) c. Being a risk-taker firm, analyze which project Murni Selasih Bhd should choose. (3 marks) d. Explain briefly any TWO (2) types of returns. (4 marks)