Details of this Paper

Following are probability distribution for Investm...

Description

Solution


Question

Following are probability distribution for Investment A, Investment P, and Investment Z Economic State Probability rA rP rZ Booming 0.2 30% 20% 2% Normal 0.5 17 12 9 Recessionary 0.3 -5 -2 27 Calculate the (a) expected rate of return, (b) standard deviation, and (c) coefficient of variation for each investment. (d) Based on your computations, which investment provides the best risk/return relationship? (e) If you could only purchase two of the investments, which ones should be chosen to form a portfolio with the lowest risk? Explain your answer. I attached a document it is the first question on it incase this didn't copy and paste correctly.

 

Paper#4212 | Written in 18-Jul-2015

Price : $25
SiteLock