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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