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Brimark Ltd. is considering three possible capital projects for next year. Each project has a 1-year life, and project returns depend on next year's state
Brimark Ltd. is considering three possible capital projects for next year. Each project has a 1-year life, and project returns depend on next year's state of the economy. The estimated rates of return are shown below. Required: a) Find each project expected rate of return, variance, standard deviation and coefficient of variation. b) Compute the correlation coefficient between; i.ii.iii.AandBAandCBandC c) Compute the expected return on a portfolio if the firm invests equal wealth on each asset. d) Compute the standard deviation of the portfolio
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