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For EACH of the following assets in the table below, compute the following i. Average annual return ii. Variance iii. Standard Deviation iv. Coefficient of
For EACH of the following assets in the table below, compute the following i. Average annual return ii. Variance iii. Standard Deviation iv. Coefficient of variation v. Comment on your general findings ASSETS ANNUAL RETURNS 5%, 10%, 15%, 4% -6%, 20%, 2%,-5%, 10% 12%, 15%, 17% 10%,-10%, 20%, -15%, 8%,-7% Given your evaluation of current economic conditions, you believe there is a 20% probability of recession, a 50% chance of continued steady growth, and a 30% probability of inflationary growth. For each possibility, you have developed an interest rate forecast for long-term Treasury bond interest rates in the table belovw Given that information, compute the following i. Expected interest rate under your forecast? Variance, standard of deviation, and coefficient of variation of your interest rate forecast? ii. Economic Forecast Recession Constant growth Inflation Interest Rate Forecast 6% 990
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