Question: Question 2 (i) Two assets A and B are currently being considered by Excell industries. The probability distributions of expected returns for these assets are

 Question 2 (i) Two assets A and B are currently being

Question 2 (i) Two assets A and B are currently being considered by Excell industries. The probability distributions of expected returns for these assets are shown in the following table Asset A Asset B Probabilit 0.10 Return 40% 10% Probabilit 0.40 0.30 0.30 Return 35% 10% 20% 0.40 0.20 0.10 5% 10% (a) Calculate the expected return for each asset. Which provides the largest expected return? (b) Calculate the standard deviation for each asset returns. Which appear to have a greatest risk? (c) Calculate the coefficient of variation (CV) for each of the assets returns. Which appear to have the greatest relative risk

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