Question
Compute the (a) expected return, (b) standard deviation, and (c) coefficient of variation for investments with the following probability distributions: Probabilities: .3, .2, .5 Payoff
Compute the (a) expected return, (b) standard deviation, and (c) coefficient of variation for investments with the following probability distributions:
Probabilities: .3, .2, .5 Payoff A: 30.0%, 10.0%, -2.0% Payoff B: 5.0%, 15.0%, 25.0%
My answers:
Payoff A
A. 10
B. 96
C. 9.6
Payoff B
A. 17
B. 38
C. 2.24
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
