Question
Consider the following four assets which have rates of return in six equally possible scenarios. Assets Scenarios Awful Poor Mediocre Okay Good Great Asset A
Consider the following four assets which have rates of return in six equally possible scenarios.
Assets | Scenarios | |||||
Awful | Poor | Mediocre | Okay | Good | Great | |
Asset A | -2% | 0% | 2% | 4% | 6% | 10% |
Asset B | -1% | 2% | 2% | 2% | 3% | 3% |
Asset C | -6% | 2% | 2% | 3% | 3% | 1% |
Asset D | -4% | 2% | 2% | 2% | 2% | 20% |
Based on their risk and return characteristics, rank the asset from best to worst to invest in.
Please show the steps of the calculation without using excel
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College Algebra
Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels
12th edition
134697022, 9780134313795 , 978-0134697024
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