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Q 11 Following are the returns of a stock XYZ and three states of the economy: 4 marks, Economy Status Probability Stock XYZ return BOOM

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Q 11 Following are the returns of a stock XYZ and three states of the economy: 4 marks, Economy Status Probability Stock XYZ return BOOM 0.35 60 NORMAL 0.30 40 WEAK 0.35 20- Q (11-A) Calculate the expected value for the stock XYZ return 2 3 marks Q (11- B) Compute the standard deviation for the stock XYZ? 3 marks Q 12- If three investment alternatives all have some degree of risk and different expected returns, why coefficient of variation could best be used to rank the risk levels of the projects? 2 marks O i * FIO Home End 9 Insert Est

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