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7.18. Single asset portfolios: Using the information from problems 7.15, 7.16, and 7.17, calculate each coefficient of variation. Problem 7.15 State of the Economy Probability
7.18. | Single asset portfolios: Using the information from problems 7.15, 7.16, and 7.17, calculate each coefficient of variation. | ||||||
Problem 7.15 | |||||||
State of the Economy | Probability | Rate of return | |||||
Healthy | 0.4 | 30% | |||||
Soft | 0.5 | 10% | |||||
Recession | 0.1 | -25% | |||||
Problem 7.16 | |||||||
Prob | Return | ||||||
Boom | 0.1 | 25.00% | |||||
Good | 0.4 | 15.00% | |||||
Level | 0.3 | 10.00% | |||||
Slump | 0.2 | -5.00% | |||||
Problem 7.17 | |||||||
Prob | Return | ||||||
Boom | 0.1 | 40.00% | |||||
Good | 0.2 | 30.00% | |||||
OK | 0.3 | 15.00% | |||||
Level | 0.2 | 2.00% | |||||
Slump | 0.2 | -12.00% |
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