Stocks X and Y have the following probability distributions of expected future returns: Probability X 0.30...
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Stocks X and Y have the following probability distributions of expected future returns: Probability X 0.30 0.30 0.40 Y -4% -2% 5% -10% 30% 50% Calculate the coefficient of variation (CV) for a) Stock X. b) Stock Y. c) Using CV as your sole decision making criterion, which stock is a a)1.21; b)1.68; c) Stock X a)0.83; b)0.59; c)Stock Y a)0.83; b)0.59; c)Stock X a)1.21; b)1.68; c)Stock Y better investment? Dann 4 of 14 Stocks X and Y have the following probability distributions of expected future returns: Probability X 0.30 0.30 0.40 Y -4% -2% 5% -10% 30% 50% Calculate the coefficient of variation (CV) for a) Stock X. b) Stock Y. c) Using CV as your sole decision making criterion, which stock is a a)1.21; b)1.68; c) Stock X a)0.83; b)0.59; c)Stock Y a)0.83; b)0.59; c)Stock X a)1.21; b)1.68; c)Stock Y better investment? Dann 4 of 14
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