Question: Please help me answer this question in the next one hour. I wont be helpful after that. Thank you so much in advance. An investor
Please help me answer this question in the next one hour. I wont be helpful after that. Thank you so much in advance.
An investor buys an asset at an initial cost of $20,124,578.
The investor believes that at the end of one year, the asset could have four possible values.
These values and probabilities are provided in the table below.
| Scenario | Expected value | Probability |
| A | 18,865,000 | 25% |
| B | 21,100,770 | 40% |
| C | 24,165,000 | 30% |
| D | 26,247,000 | 5% |
Required
- In dollars and cents, what is the expected value of the asset in 1 year? (2 marks)
- In percentage terms to 2 decimal places, what is the expected return on the asset? (1 mark)
- In percentage terms to 2 decimal places, what is the expected standard deviation of the return of the asset? (1 mark)
- What is the coefficient of variation of this portfolio? (1 mark)
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