NPTEL Project Management Week 2 Assignment Assignment Answers 2024

1. A ___________ is connected to circumstances outside the project that may influence the
scope of work and the performance of the organization.

Operational Risk
Contextual Risk
Strategic Risk
Financial Risk

Answer :- b

2. Which of the following is the correct four-stage risk management process?

Risk identification → Outsourcing of Risk management → Analysis of Probability and Consequences → Contractual or Legal formalities
Risk identification → Analysis of Probability and Consequences → Risk Mitigation Strategies → Control and Documentation
Risk identification → Analysis of Probability and Consequences → Risk Mitigation Strategies → Contractual or Legal formalities
Risk identification → Outsourcing of Risk management → Risk Mitigation Strategies → Control and Documentation

Answer :- b

3. Which of the following statement/(s) is/are TRUE?

I. SWOT analysis and Brain storming are project management basic planning technique

II. Check List and Pair wise Ranking are commonly used direct evaluation methods

III. Analytical Hierarchy Process is a criteria-based group decision evaluation method

IV. Decision Trees is a multi-criteria evaluation method

I, II and III
I, II and IV
II, III and IV
All of the statements are TRUE

Answer :- For Answer Click Here

4. Which of the following is a valid assumption for CAPM?

Limited short selling is allowed
Limited riskless lending and borrowing is allowed
No transaction costs or administrative costs
No projects/assets are marketable

Answer :- For Answer Click Here

5. Which of the following statement is TRUE?

Risk is usually denoted by the deviation of the readings.
Diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk.
The project carries less systematic risk and volatility than the market
None of A, B or C is true

Answer :-

6. Question no. 6 to 10 are based on the information given below:

The initial investment in Project A and Project B is Rs. 1,80,000 and Rs. 1,20,000. Year-on-year historical returns of both the Project A and Project B over a 20-year period is analyzed and the expected return of the project is found to be 14.48% and 15.57%, the risk-free interest is 3.5%. If one invests in the market index, the expected market returns is 8.65%.

𝛽_𝐴 of the Project A and 𝛽_𝐵of the Project B is given by

𝛽_𝐴 = 0.47 and 𝛽_𝐵 = 0.43
𝛽_𝐴 = 0.47 and 𝛽_𝐵 = 2.34
𝛽_𝐴 = 2.13 and 𝛽_𝐵 = 0.43
𝛽_𝐴 = 2.13 and 𝛽_𝐵 = 2.34

Answer :-

7. The value of the Project A and Project B as on today, after 20 year, is:

𝑃_𝑡,𝐴 = 𝑅𝑠. 138661.20 and 𝑃_𝑡,𝐵 = 𝑅𝑠. 206045.10
𝑃_𝑡,𝐴 = 𝑅𝑠. 206045.10 and 𝑃_𝑡,𝐵 = 𝑅𝑠. 138661.20
𝑃_𝑡,𝐴= 𝑅𝑠. 112480.60 and 𝑃_𝑡,𝐵 = 𝑅𝑠. 167357.63
𝑃_𝑡,𝐴 = 𝑅𝑠. 162489.68 and 𝑃_𝑡,𝐵= 𝑅𝑠. 105417.3

Answer :-

8. Suppose the Net Present Value (NPV) of Project A is 𝑅𝑠. 150000 and the Net Present Value (NPV) of Project B is 𝑅𝑠. 100000. Which project should be chosen?

Insufficient Information
Project A is chosen over Project B
Project B is chosen over Project A
Both can be selected

Answer :-

9. If we expect a Project A, with a beta as obtained in Q.No.6 and all other data remains the same, to offer a rate of return of 14.00 percent, we should