Question: 5) Please answer the questions below for Kuyucakli Yusuf (KY) and Krk Mantolu Madonna (KMM) Corporations: (show all your computations) Economy Probability 0.30 Recession Average
5) Please answer the questions below for Kuyucakli Yusuf (KY) and Krk Mantolu Madonna (KMM) Corporations: (show all your computations) Economy Probability 0.30 Recession Average Boom Expected Returns KY Inc. KMM Inc. -0.4x -0.22 0.3x 0.2x 0.6x 0.5x 0.40 0.30 a) Compute the expected return of each stock. (8 pes) KY Inc.: KMM Inc.: b) Compute the total risk (6) of each stock. (8 pts) KY Inc.: KMM Inc.: c) Compute the coefficient of variation of each stock. Evaluate the results. (9 pts) KY Inc.: KMM Inc.: Evaluation
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