Question: What is the best and correct method to use in order to solve similar problems that i am working on? The table below gives the
What is the best and correct method to use in order to solve similar problems that i am working on?
The table below gives the probability of different returns for three different assets. Using this table, calculate the following:
A.The expected return of each asset
B.The standard deviation of returns of each asset
C.The coefficient of variation of each asset
D.Based on your answers to B) and C) above, which asset has the highest total risk and highest relative risk?
Asset A
ProbabilityReturn
0.23
0.65
0.2 8
Asset B
ProbabilityReturn
0.14
0.25
0.37
0.412
Asset C
ProbabilityReturn
0.2 3
0.75
0.26
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