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Assessing return and risk Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following
Assessing return and risk Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point: i X Data Table a. Compute the range of possible rates of return. b. Compute the expected return. c. Compute the standard deviation of the returns. d. Compute the coefficient of variation of the returns. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. The range of possible rates of return is % (Round Rate of return Probability 15% 0.10 25% 0.05 35% 0.10 45% 0.15 55% 0.25 65% 0.15 75% 0.10 85% 0.05 95% 0.05
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