Question: Compute the (a) expected return, (b) standard deviation, and (c) coefficient of variation for investments with the following probability distributions: Probabilities: .3, .2, .5 Payoff

Compute the (a) expected return, (b) standard deviation, and (c) coefficient of variation for investments with the following probability distributions:

Probabilities: .3, .2, .5 Payoff A: 30.0%, 10.0%, -2.0% Payoff B: 5.0%, 15.0%, 25.0%

My answers:

Payoff A

A. 10

B. 96

C. 9.6

Payoff B

A. 17

B. 38

C. 2.24

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