1. The following probability distributions of returns for two stocks have been estimated: Probability 0.25 Stock...

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1. The following probability distributions of returns for two stocks have been estimated: Probability 0.25 Stock X Stock Y 3% 6% 0.35 8% 3% 0.40 6% 1% What is the coefficient of variation for the stock that is more risky relative to its return (use the coefficient of variation to rank) and explain why? 1. The following probability distributions of returns for two stocks have been estimated: Probability 0.25 Stock X Stock Y 3% 6% 0.35 8% 3% 0.40 6% 1% What is the coefficient of variation for the stock that is more risky relative to its return (use the coefficient of variation to rank) and explain why?

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Answer To calculate the coefficient of variation CV we need to first find the standard deviation of ... View the full answer