Question: P8-11 Integrative: Expected return, standard deviation, and coefficient of variation Three assets-F, G, and H-are currently under consideration by Perth Industries. The probability distributions of
P8-11 Integrative: Expected return, standard deviation, and coefficient of variation Three assets-F, G, and H-are currently under consideration by Perth Industries. The probability distributions of expected returns for these assets are shown in the follow- ing table. Asset F Pri R eturn, r, 0.10 40% 0.20 10 0.40 0 0.20 -5 0.10 -10 Asset H Return, 40% 20 i 1 2 3 4 5 Asset G Pri Return, 0.40 35% .30 10 0.30 -20 0 Pr; 0.10 0.20 0.40 0.20 0.10 10 0 -20 a. Calculate the average return, 7, for each of the three assets. Which provides the largest average return? b. Calculate the standard deviation, O, for each asset's returns. Which appears have the greatest risk? c. Calculate the coefficient of variation, CV, for each asset's returns. Which app to have the greatest relative risk
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