Question: Please Answer Clearly and dont copy paste ! Here is data from two different companies: Economic Conditions Probability of Event Rate of Return on Stock
Please Answer Clearly and dont copy paste !
Here is data from two different companies:
| Economic Conditions | Probability of Event | Rate of Return on Stock | |
| PT. Rikat Pisan | PT. Sigap Selalu | ||
| Booming | 0.1 | 45% | 27.5% |
| Passion | 0.2 | 25% | 20% |
| Normal | 0.4 | 15% | 15% |
| Sluggish | 0.2 | 5% | 10% |
| Recession | 0.1 | (2.5)% | 0% |
Questions
1. Based on this data, if you are a risk averse person, which company will you choose?
2. Calculate the expected return, standard deviation, and coefficient of variation of the two companies!
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