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Maniz Berhad is considering investing RM10,000. The following information is the probability distribution of returns for Kuih

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Answer #1

Expected return on project = Sum of probability*Return

Kuih ketayap = 0.1*-25% + 0.2*-8% + 0.4*18% + 0.3*40%

= 15.1%

Lapis = 10.7%

b.Portfolio return = weighted average return

= 15.1%*0.4 + 10.7%*0.6

= 12.46%

c.Return on Portfolio is between return on two projects as it is the average of two

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