Question: Expected return, standard deviation, and coefficient of variationAn asset is currently being considered by Perth Industries. The probability distribution of expected returns for this asset
Expected return, standard deviation, and coefficient of variationAn asset is currently being considered by Perth Industries. The probability distribution of expected returns for this asset is shown in the following table,
a.Calculate the expected value of return, - overbar, for the asset.
r
b. Calculate the standard deviation, sigma Subscript rfor the asset's returns.
c. Calculate the coefficient of variation, CV, for the asset's returns.
a.The expected value of return, r overbarfor the asset is ________%(Round to two decimal places.)
b. The standard deviation, sigma Subscript r for the asset's returns is ______%(Round to two decimal places.)
c. The coefficient of variation, CV, for the asset's returns is ________(Round to two decimal places.)
| 1 | 0.1 | 35.00% |
| 2 | 0.05 | 20.00% |
| 3 | 0.6 | 10.00% |
| 4 | 0.15 | 5.00% |
| 5 | 0.1 | -5.00% |
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