Question 1 A Calculate the expected value, standard deviation of returns, range and coefficient of variation for asset A and B Which one would you choose Explain your answer Possible Outcomes Probability Returns ( ) A Returns ( ) B Pessimistic 0 25 5 3 Most likely 0 55 10 10 Optimistic 0 2 13 17 B How much would Sophie have in her account at the end of 10 years if she deposit $2,000 into the account today if she earned 8 percent interest compounded semi annually and monthly Explain the difference in your results

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Question: Question 1 A. Calculate the expected value, standard deviation of returns, range and coefficient of variation for asset A and B. Which one would you

Question 1

A. Calculate the expected value, standard deviation of returns, range and coefficient of variation for asset A and B. Which one would you choose? Explain your answer

Possible Outcomes	Probability	Returns (%) A	Returns (%) B
Pessimistic	0.25	5	3
Most likely	0.55	10	10
Optimistic	0.2	13	17

B. How much would Sophie have in her account at the end of 10 years if she deposit $2,000 into the account today if she earned 8 percent interest compounded semi-annually and monthly. Explain the difference in your results.

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