Question: 1. Calculate the expected return, standard deviation of returns and coefficient of variation for the stocks below. The data for Stock A is based

1. Calculate the expected return, standard deviation of returns and coefficient of

1. Calculate the expected return, standard deviation of returns and coefficient of variation for the stocks below. The data for Stock A is based on predictions and the data for Stock B is historical. a) Calculate the expected return, standard deviation of returns and coefficient of variarion for Stock A based on the PREDICTIONS below Stock A Probability Strong market Stable market Weak market 30% Return 7,50 % 50% 3,20 % 20% -1,80 % b) Calculate the expected return, standard deviation of returns and coefficient of variarion for Stock B based on the HISTORICAL returns below Stock B Year Return 2015 0,72% 2016 1,20 % 2017 2018 -0,85 % 2,30% c) Based only on the coefficient of variation of stocks A and B, which stock offers a better risk return relationship? (Ignore the fact that you can't really compare the CVs since they are based on different type of data)

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