You have $50000 to invest in either asset X or asset Y. Probability and possible returns...

 

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You have $50000 to invest in either asset X or asset Y. Probability and possible returns of the two asset are given below. Calculate the expected rate of return and the standard deviation of each asset and decide which asset is more risky. Asset X Probability 0.25 0.50 0.25 return 13% 15% 17% Asset Y probability 0.25 0.50 0.25 return 7% 15 23. You have $50000 to invest in either asset X or asset Y. Probability and possible returns of the two asset are given below. Calculate the expected rate of return and the standard deviation of each asset and decide which asset is more risky. Asset X Probability 0.25 0.50 0.25 return 13% 15% 17% Asset Y probability 0.25 0.50 0.25 return 7% 15 23.

Answer rating: 100% (QA)

To calculate the expected rate of return and the standard deviation for each asset we will use the g... View the full answer