Question
) Captain Treys Seafood LLC is considering purchasing one of two restaurants currently available for sale in Ocean City, MD. The expected annual rates of
) Captain Treys Seafood LLC is considering purchasing one of two restaurants currently available for sale in Ocean City, MD. The expected annual rates of return and the related probabilities for each restaurant are given below. Given this information, answer the below questions (12.5 points).
Asset A: Oceanside restaurant | Asset B: Bayside restaurant | ||
Annual return, % | Probability, % | Annual return, % | Probability, % |
12 | 20 | 35 | 5 |
16 | 60 | 25 | 60 |
30 | 20 | 10 | 35 |
A.) Compute the expected annual rate of return for each asset (3 points)
B.) Compute the standard deviation of expected return for each asset (4 points)
C.) Compute the coefficient of variation of return for each asset (3 points)
(D) Given the above results, explain which asset the company should select and why (2.50 points)
Thank you. If could you please write these out by hand. You dont have to do them if you could just explain what I do to get the answer for each one.
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