Question: 8-3 what are the (a) expected return, (b) standard deviation, and (c) coefficient of variation for an investment and with the following probability distribution? Profitability
8-3 what are the (a) expected return, (b) standard deviation, and (c) coefficient of variation for an investment and with the following probability distribution?
| Profitability | Payoff |
| .2 | 19.0% |
| .7 | 9.0 |
| .1 | 4.0 |
8-5 compute the (a) expected return, (b) standard deviation, and (c) coefficient of variation for investments with the following probability distributions.
| Profitability | Ra | Rb |
| .3 | 30.0% | 5.0% |
| .2 | 10.0 | 15.0 |
| .5 | -2.0 | 25.0 |
8-7 Which of the following investments has the greater relative risk?
| Investment | Expected Return, | Standard Deviation |
| F | 16.0% | 7.0% |
| G | 27.0 | 13.0 |
8-9 What is the expected return of the following portfolio of investments?
| Investment | I | Amount invested |
| DEF | 4% | $30,000 |
| Jkl | 24 | 25,000 |
| TUV | 14 | 45,000 |
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