Question: Full formula needed. tq ! The probability distributions of expected returns for stock HR and stock LR are as follows: Probability Stock HR (%) Stock
Full formula needed. tq !
The probability distributions of expected returns for stock HR and stock LR are as follows: Probability Stock HR (%) Stock LR (%) 0.1 (15) (25) 0.2 0 5 0.4 5 17 0.2 10 30 0.1 25 60 a) Calculate the expected return for stock HR and LR. (3 Marks) b) Calculate the following: 1) variances for stock HR and LR. D) standard deviation for stock HR and L.R. ii) coefficient of variation for stock HR and LR. (3 Marks) (2 Marks) (2 Marks) c) Which is the riskier of the two stocks? (2 Marks) (Total: 12 Marks)
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