Question: Please help me solve questions 1-4 Hotels A and B have the following probability distributions of expected future returns: Economy Probability Hotel A Hotel B

 Please help me solve questions 1-4 Hotels A and B have

Please help me solve questions 1-4

the following probability distributions of expected future returns: Economy Probability Hotel A

Hotels A and B have the following probability distributions of expected future returns: Economy Probability Hotel A Hotel B Recession 40% (5%) 5% Stable 30% 10% 15% Boom 30% 15% 20% 1 . Calculate the expected rates of return KA and KB for Hotels A and B. KA = KB= 2. Calculate the coefficient of variation for Hotels A and B. The standard deviation of the returns for Hotel A is 15% and for Hotel B is 18%. CVA = CVB = 3. By comparing the coefficients of variation above, which hotel investment is riskier? (A or B) Hotel 4. Hotel A's stock has a beta of 1.3 and Hotel B's stock has a beta of 1.4. The risk free rate is 2.25% and the market rate is 8%. Calculate the required rates of return for Hotel A and Hotel B stocks. Hotel A = Hotel B =

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