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a. Calculate the expected return and standard deviation of both PT KFC stocks, and the Pool of other stocks. b. Calculate the coefficient of variation
a. Calculate the expected return and standard deviation of both PT KFC stocks, and the Pool of other stocks.
b. Calculate the coefficient of variation for PT KFC stocks and the Pool of other stocks.
c. Calculate the expected return and standard deviation for a portfolio of stocks consisting of 50:50 split of KFC stocks, and the Pool of other stocks.
Members of PT. KFC 's finance team is currently performing analysis of the expected returns of the company's share and further comparing against the figures obtained from the shares of other companies in the same business sector defined as the Pool of other stocks (as benchmark) Summary of the results obtained is presented in the following table: Probability KFC stock Return Possible Outcomes (economic condition) Pool of other stocks -10% Very Poor Poor Average Good Excellent 0.05 0.15 0.60 0.15 0.05 2 14 18 25 20% 10 8 - 3 -4Step by Step Solution
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