Question: Assessing return and risk Swift Manufacturing is evaluating an asset purchase. The annual rate of return and the related probabilities given in the following table
Assessing return and riskSwift Manufacturing is evaluating an asset purchase. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point:
rate of return probability
5% 0.05 10% 0.05 15% 0.10 20% 0.10 25% 0.30 30% 0.15 35% 0.10 40% 0.05 45% 0.10
a.Compute the range of possible rates of return.
b.Compute the expected return.
c.Compute the standard deviation of the returns.
d.Compute the coefficient of variation of the returns.
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