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Bill Broodiest, star quarterback for the Spring Bay Smashers, would like to invest a small portion of his earnings in stocks of one of three
Bill Broodiest, star quarterback for the Spring Bay Smashers, would like to invest a small portion of his earnings in stocks of one of three firms. His estimated dividends and the probabilities of their occurrence follow.
Galaxy Communications | |
.1 | $750 |
.3 | 800 |
.4 | 900 |
.2 | 1,200 |
Grasshopper Tractor | |
.2 | $0 |
.2 | 675 |
.4 | 750 |
.2 | 900 |
Breathiest Electronics | |
.1 | $300 |
.2 | 600 |
.3 | 700 |
.4 | 1,100 |
. |
A. Calculate the expected return for each stock
B. Calculate the cooefficient of variation for each stock.
C. Rank the three from most to least risky.
D. Which Stock would you recommend to Bill?
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