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P1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. ASSET ANNUAL RETURNS A

P1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. ASSET ANNUAL RETURNS A 5%, 10%, 15%, 4% B -6%, 20%, 2%, -5%, 10% C 12%, 15%, 1 7% D 10%, -10%, 20%, -15%, 8%, -7% P2. Based upon your answers to question 1, which asset appears riskiest based on standard deviation? Based on coefficient of variation? P3. Recalling the de?nitions of risk premiums from Chapter 8 and using the Treasury bill return in Table 1 2.4 as an approximation to the nominal risk-free rate, what is the risk premium from investing in each of the other asset classes listed in Table 1 2.4? P4. What is the real, or after in?ation, return from each of the asset classes listed in Table 1 2.4

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