- Stock X Stock B Possible Probability Possible Probability Return Return 5 25 2 10 10 50 15 50 25 25 30 40 A 1 (38.32 KiB) Viewed 31 times
Stock X Stock B Possible Probability Possible Probability return return -5% 25% 2% 10% 10% 50% 15% 50% 25% 25% 30% 40% a
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Stock X Stock B Possible Probability Possible Probability return return -5% 25% 2% 10% 10% 50% 15% 50% 25% 25% 30% 40% a
Stock X Stock B Possible Probability Possible Probability return return -5% 25% 2% 10% 10% 50% 15% 50% 25% 25% 30% 40% a) Compute the expected rate of return for each stock b) Compute the standard deviation for each stock c) Compute the coefficient of variation for each stock d) Which stock should the manager of the fund buy? Why? Possible return 4% 20% 35% Stock C Probability 25% 45% 30%