3 Project 1 Orebody Grade 1 You Are Considering Investing In The Following Pair Of Projects Project 2 Probability Val 1 (33.06 KiB) Viewed 42 times
3 Project 1 Orebody Grade 1 You Are Considering Investing In The Following Pair Of Projects Project 2 Probability Val 2 (23.9 KiB) Viewed 42 times
3. Project 1 Orebody Grade 1% You are considering investing in the following pair of projects. Project 2 Probability Value Orebody Probability Value Grade 40% -10MM 2% 50% 10MM 45% 20MM 3% 35% 15MM 2% 5% 15% 60MM 4% 15% 20MM 1. What is the expected values, variances and standard deviations of both projects? 2. Assuming both projects are uncorrelated what is the expected value, standard deviation and variance if you take a 80% share in Project 1 and a 20% share in Project 2.
Probability of PI & P2 P(P1,2) Value (80% P1, 20% P2) V BOX P1, 20% P2) Expected Values For each outcome PRIPL.P2)*/V80 P1, 20% P2)-Total Evy2 Outcome for Project 1 (P1) Cubody Grade Probabdi Valur 1% 40% -10MM 19 40% - TOMM 1% 40% - 10MM 2% 45% 20MM 2% 45% 20MM 2% 45% 20MM 5% 15% BOM 5% 154 BOM 5% 15% BOMM Outcome for Project 29 Debod Grade BV 24 50% 10MM 3% 354 154M 4% 15% 2001 2% 50% 100M 3% 35% 15111 4% 15% 20MM 2% 50% 10MM 3% 355 1511 4% 159 201 Total Total Expected Value (Total EV): Variance STD Deviation:
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