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1. Calculate the expected return, standard deviation of returns and coefficient of variation for the stocks below. The data for Stock A is based
1. Calculate the expected return, standard deviation of returns and coefficient of variation for the stocks below. The data for Stock A is based on predictions and the data for Stock B is historical. a) Calculate the expected return, standard deviation of returns and coefficient of variarion for Stock A based on the PREDICTIONS below Stock A Probability Strong market Stable market Weak market 30% Return 7,50 % 50% 3,20 % 20% -1,80 % b) Calculate the expected return, standard deviation of returns and coefficient of variarion for Stock B based on the HISTORICAL returns below Stock B Year Return 2015 0,72% 2016 1,20 % 2017 2018 -0,85 % 2,30% c) Based only on the coefficient of variation of stocks A and B, which stock offers a better risk return relationship? (Ignore the fact that you can't really compare the CVs since they are based on different type of data)
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