Question
Below is the state of the economy that offer potential to invest in assets X and asset Y. NB: The returns are already converted
Below is the state of the economy that offer potential to invest in assets X and asset Y. NB: The returns are already converted from the percentages. State of the Economy Return on X Return on Y Depression -0.20 0.05 Recession 0.10 0.20 Normal 0.30 -0.12 Boom 0.50 0.09 Calculate: i. Expected return for X and Y (4 marks) (8 marks) ii. Variance for X and Y Standard deviation for X and Y. (4 marks) iv. Briefly, differentiate between systematic risk and firm specific risk giving examples for each. (4 marks)
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Essentials Of Business Statistics Communicating With Numbers
Authors: Sanjiv Jaggia, Alison Kelly
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