Below is the state of the economy that offer potential to invest in assets X and...

 

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Below is the state of the economy that offer potential to invest in assets X and asset Y. NB: The returns are already converted from the percentages. State of the Economy Return on X Return on Y Depression -0.20 0.05 Recession 0.10 0.20 Normal 0.30 -0.12 Boom 0.50 0.09 Calculate: i. Expected return for X and Y (4 marks) (8 marks) ii. Variance for X and Y Standard deviation for X and Y. (4 marks) iv. Briefly, differentiate between systematic risk and firm specific risk giving examples for each. (4 marks) Below is the state of the economy that offer potential to invest in assets X and asset Y. NB: The returns are already converted from the percentages. State of the Economy Return on X Return on Y Depression -0.20 0.05 Recession 0.10 0.20 Normal 0.30 -0.12 Boom 0.50 0.09 Calculate: i. Expected return for X and Y (4 marks) (8 marks) ii. Variance for X and Y Standard deviation for X and Y. (4 marks) iv. Briefly, differentiate between systematic risk and firm specific risk giving examples for each. (4 marks)

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