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Probability Future Return - X Future Return - Y .1 -10% -35% .2 2% 0% .4 12% 20% .2 20% 25% .1 38% 45% A.

  • Probability

    Future Return - X

    Future Return - Y

    .1

    -10%

    -35%

    .2

    2%

    0%

    .4

    12%

    20%

    .2

    20%

    25%

    .1

    38%

    45%

  • A. Given RX = 12%, find RY
  • B. Given y = 20.35%, find X
  • Calculate CVX and CVY
  • Compare their and CV to decide which one is more risky per dollar of return

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