Question: 1. Given the following probability distribution for assets X and Y, 8% 10% X Y Return Prob. Return Prob. 0.10 0.25 9 0.20 11 0.35

 1. Given the following probability distribution for assets X and Y,

1. Given the following probability distribution for assets X and Y, 8% 10% X Y Return Prob. Return Prob. 0.10 0.25 9 0.20 11 0.35 11 0.30 12 0.40 12 0.40 a) compute the expected rate of return, variance, standard deviation, and coefficient of variation for the two assets. Which asset is a better investment? (b) Find the expected rate of return for the portfolio assuming investor invests 60 percent of its money in asset X and 40 percent in asset Y

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