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Integrative: Expected return, standard deviation, and coefficient of variation. Three assets- F, G, and H UUTICUU 1 b. Con (3) The standard deviation of the
Integrative: Expected return, standard deviation, and coefficient of variation. Three assets- F, G, and H
UUTICUU 1 b. Con (3) The standard deviation of the returns. (4) The coefficient of variation of the returns. D. Construct a bar chart of each distribution of rates of return. c. Which project would you consider less risky? Why? LG 2 P8-11 Integrative: Expected return, standard deviation, and coefficient sets-F, G, and H-are currently being considered by turn, standard deviation, and coefficient of variation Three as- --are currently being considered by Perth Industries. The probability 118 of expected returns for these assets are shown in the following table. Asset F Asset G Asset H - - - Pr; Return, r; Pr; Return, 0.10 40% 0.40 35% 0.20 100.3010 0.40 0 0.30 -20 0.20 -5 0.10 -10 Pr; Return, 1; 0.10 40% 0.20 20 0.40 10 0.200 0.10 -20 - + . a. Calculate the expected value of return, 7, for each of the three assets. Which pro- vides the largest expected return? b. Calculate the standard deviation, or, for each of the three assets' returns. Which appears to have the greatest risk? Calculate the coefficient of variation, CV, for each of the three assets' returns. Which appears to have the greatest relative risk? c. P8-12 G2 Normal probability distribution Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, 7, is 18.9%; and that the coefficient of variation, CV, is 0.75; answer the following questions. a. Find the standard deviation of returns, Op. of evnected return outcomes associated with the followingStep by Step Solution
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