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I could use some help with the problem attached. Thank you! Question 1 2.5 pts Consider the following probability distribution of returns estimated for a
I could use some help with the problem attached. Thank you!
Question 1 2.5 pts Consider the following probability distribution of returns estimated for a proposed project that involves a new ultrasound machine: State of the Probability Rate of Economy of Occurrence Return Very poor 0.1 -10% Poor 0.2 0% Average 0.4 10% Good 0.2 20% Very good 0.1 30% Problem 1, part a: What is the expected rate of return on the project? Note: Please answer in the following format: 12.3%. This includes a trailing zero (if needed). part b: What is the project's standard deviation of returns? Note: Please answer in the following format: 12.34% part c: What is the project's coefficient of variation (CV) of returns? Note: Please answer in the following format: 1.2 part d: What type of risk does the standard deviation and CV measure? Hint: three word answer part e: Stand alone risk is relevant only when the investment is held in Hint: one wordStep by Step Solution
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