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You Have Estimated the IRR for a New Project with the Following

Question 40

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You have estimated the IRR for a new project with the following probabilities:
You have estimated the IRR for a new project with the following probabilities:    a. Calculate the mean of the project. b. Calculate the standard deviation of the project. c. Calculate the coefficient of variation. d. Calculate the expected IRR of the new portfolio with the new project. The current portfolio has an expected IRR of 9% and a standard deviation of 3% and will represent 60% of the total portfolio. a. Calculate the mean of the project.
b. Calculate the standard deviation of the project.
c. Calculate the coefficient of variation.
d. Calculate the expected IRR of the new portfolio with the new project. The current portfolio has an expected IRR of 9% and a standard deviation of 3% and will represent 60% of the total portfolio.

Correct Answer:

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a. Mean = 10.35%
b. Standard d...

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