QUESTION 19 Single company Risk analysis Mr Arthur is a very big investor...

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Accounting

QUESTION 19

  1. Single company Risk analysis

    Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Standard Deviation for company B

    QUESTION 19

    Single company Risk analysis

    Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Standard Deviation for company B

    possible outcome

    probability

    Rate of return

    Company A (%)

    Company B (%)

    Boom

    0.3

    50

    30

    Normal

    0.4

    25

    20

    recession

    0.3

    -10

    15

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