b) Given the following possible returns (dividends plus capital gains) over the coming year from a £10,000 investment in
Posted: Sun Jun 05, 2022 10:27 am
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)