3. The table below gives the probability of different returns for three different assets. Using this...
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3. The table below gives the probability of different returns for three different assets. Using this table, calculate the following: a. The expected return of each asset b. The standard deviation of returns of each asset c. The coefficient of variation of each asset d. Based on your answers to B) and C) above, which asset has the highest total risk and highest relative risk? Asset A Asset A Asset B Probability Return Probability Asset B Return Asset C Probability Asset C Return 0.3 5 0.1 0.4 8 0.3 0.3 9 0.5 0.1 2822 25 0.1 4 20 0.8 5 15 0.1 6 14 3. The table below gives the probability of different returns for three different assets. Using this table, calculate the following: a. The expected return of each asset b. The standard deviation of returns of each asset c. The coefficient of variation of each asset d. Based on your answers to B) and C) above, which asset has the highest total risk and highest relative risk? Asset A Asset A Asset B Probability Return Probability Asset B Return Asset C Probability Asset C Return 0.3 5 0.1 0.4 8 0.3 0.3 9 0.5 0.1 2822 25 0.1 4 20 0.8 5 15 0.1 6 14
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To calculate the expected return standard deviation of returns and coefficient of variation for each asset well use the given probability and return v... View the full answer
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
Posted Date:
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