Question: 1. What is the range for A? 2. What is the average expected return for B? 3. Which is the riskier investment? 4. If the

1. What is the range for A? 2. What is the average expected return for B? 3. Which is the riskier investment? 4. If the standard deviation of A is 11.09% and B is 5.88% what is the CV (coefficient of variation) for both A and B?

Scenario Analysis: Probability A B

Boom 20% 0.28 -0.04

Most likely 60% 0.12 0 .08

Recession 20% -0.07 0.14

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