Question: Need to check an answer What are the (a) expected return, (b) standard deviation, and (c) coefficient of variation for an investment with the following
Need to check an answer
What are the (a) expected return, (b) standard deviation, and (c) coefficient of variation for an investment with the following probability distribution?
probabilities: .2, .7, & .1 payoff: 19.0%, 9.0%, 4.0%
My answers
a. .2(.19)+.7(.09)+.1(.04)= 10.5
b. (.00722)+(.0081)+(.0016)= .01692= sq rt .01692 = .13 = 13%
c. .13/10.5=1.2
Thank you
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