Question
Complete the table below. of view Complete the table below. State of the economy Recession Boom Expected value Va riance Standard deviation Coefficient of Variation
Complete the table below. of view
Complete the table below. State of the economy Recession Boom Expected value Va riance Standard deviation Coefficient of Variation Probability 0.4 0.6 Stock M 15.5 6 Stock H 21 Risk free Portfolio I invested in each Covariance (H,M) = -1.25 Portfolio 2 3 OYO invested in M and in H Covariance M --1.25 Portfolio 3 70% invested in M and 30% in a risk free T bond yielding Covariance Which of the options M, H, Portfoliol , Portfolio 2 or Portfolio 3 is best from a risk adverse person's point of view?
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