Q.1.2 You have been presented with the following information and asked to estimate the rate of return of two investments, which are considered to be of similar risk. Historical risks are a reasonable indicator of future returns. Value at 1 January 2023 Value at 31 December 2023 Cash flow Investment 1 Investment 2 90 000 240 000 96 000 260 000 6 800 40 000 Q.1.2.1 Calculate the expected return of each investment. Provide the formulas used. Q.1.2.2 Assuming the two investments have the same risk profile, which investment should you choose and why? (12) 27 (3)

Q.1.2 You have been presented with the following information and asked to estimate the rate of return of two investments, which are considered to be of similar risk. Historical risks are a reasonable indicator of future returns. Value at 1 January 2023 Value at 31 December 2023 Cash flow Investment 1 Investment 2 90 000 240 000 96 000 260 000 6 800 40 000 Q.1.2.1 Calculate the expected return of each investment. Provide the formulas used. Q.1.2.2 Assuming the two investments have the same risk profile, which investment should you choose and why? (12) 27 (3)

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 2LTAI

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Subject name: Principles of Insurance and Risk Management, Answer it fast please.
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Use the following table to calculate the expected return from the asset. Return Probability 0.1 0.25 0.2 0.5 0.25 0.25 20.00% 18.75% 17.50% 15.00%
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Q15 The rate which considers the riskiness and available returns on the investments is known as a. Constant Dividend b. Maximum rate of return c. Minimum acceptable rate of return d. Constant Yield
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