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Hi teachers! Please help me these questions with answers thanks! Probability Distribution A financial advisor is planning to invest his client's money on the stock
Hi teachers! Please help me these questions with answers thanks!
Probability Distribution A financial advisor is planning to invest his client's money on the stock market. He has to choose between 2 funds, X and Y. Details about the funds are given below in the table Fund Y Return % P(x) Assets in the funds Stock Bond Real estate Alternative Investment Fund X Return % Amount invested $ 12 4500 7 8500 18 1200 13 1700 14 9 16 16 0.30 0.40 0.20 0.10 Required 1. Calculate the expected return [ E(x)] of the two funds. Which fund has the highest return? 2. Calculate the variance and standard deviation for each of their return. Which one appears to have highest risk? 3. Calculate the coefficient of variation and Sharpe ratio for each fund Step by Step Solution
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