- B Given The Following Possible Returns Dividends Plus Capital Gains Over The Coming Year From A 10 000 Investment In 1 (72.23 KiB) Viewed 22 times
b) Given the following possible returns (dividends plus capital gains) over the coming year from a £10,000 investment in
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b) Given the following possible returns (dividends plus capital gains) over the coming year from a £10,000 investment in
b) Given the following possible returns (dividends plus capital gains) over the coming year from a £10,000 investment in General Taylor plc common stock: State of economy Probability Return Recession 0.2 -£1,000 0.6 £1,500 Normal year Boom 0.2 £2,500 Required (i) Calculate the expected return. (ii) Calculate the standard deviation of returns. (iii) Calculate the Coefficient of variation. c) Explain the following features that may be embedded in a bond: (i) Callable (ii) Puttable (iii) Convertible (3 marks) (3 marks) (3 marks) (2 marks) (2 marks) (2 marks)