NUMERICAL PROBLEMS
  1. Calculate the expected return from an investment based on the following probabilities:
    1. 20% probability of earning 10%
    2. 30% probability of earning 12%
    3. 40% probability of earning 8%
    4. 10% probability of earning 14%
  2. If expected return from X, Y and Z is respectively 10.2%, 12% and 11% and investment in them is in the ratio of 40:40:20, find the portfolio return.
  3. The probability of return from an investment is as follows:
    1. 20% probability of earning Rs 600
    2. 40% probability of earning Rs 800
    3. 30% probability of earning Rs 500
    4. 10% probability of earning Rs 1000

    Find the element of risk in the investment.

  4. The probability of return from X and Y is as follows:

    For X

    1. 20% probability of earning Rs 600
    2. 40% probability of earning Rs 800 ...

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