Question: Provide an answer to the question below. Ensure that all workings/solutions are legible. Thanks for your help. Risk & Return Situation Asset A Asset B
Provide an answer to the question below. Ensure that all workings/solutions are legible. Thanks for your help.
Risk & Return
| Situation | Asset A | Asset B | ||||||
| Situation | Probability | Returns | Exp Ret | Deviation | Probability | Returns | Exp Ret | Deviations |
| Recession | 0.15 | 2% | ?? | ?? | 0.15 | -30% | ?? | ?? |
| Normal | 0.55 | 10% | ?? | ?? | 0.55 | 18% | ?? | ?? |
| Boom | 0.30 | 15% | ?? | ?? | 0.30 | 31% | ?? | ?? |
| Expected Return = ?? Risk =?? | Expected Return = ?? Risk = ?? | |||||||
| Coefficient of Variation Asset A = ?? | Coefficient of Variation Asset B =?? | |||||||
| Parameters | Asset A | Asset B |
| Expected returns | ??? | ??? |
| Risk | ??? | ??? |
| Coefficient of Variation | ??? | ??? |
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