Question
Consider the table below and answer the preceding questions State of economy Return on stock A Return on stock B Probability of return Recession 5%
Consider the table below and answer the preceding questions
| State of economy | Return on stock A | Return on stock B | Probability of return |
| Recession | 5% | -1% | 0.3 |
| Normal | 10% | 5% | 0.5 |
| Prosperity | 15% | 20% | 0.4 |
Calculate A. The expected return of stock A and B B. The standard deviation of stock a and B C. Coefficient of variation of stock A and B D. Which stock is risky?
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
