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Q No. 5 Based on data in the following Table: - Economy Prob Firm X Firm Y Recession 0.1 -27.0% 27.0% Below avg 0.2 -7.0%
Q No. 5 Based on data in the following Table: -
Economy | Prob | Firm X | Firm Y |
Recession | 0.1 | -27.0% | 27.0% |
Below avg | 0.2 | -7.0% | 13.0% |
Average | 0.4 | 15.0% | 15% |
Above avg | 0.2 | 25.0% | -11.0% |
Boom | 0.1 | 40.0% | -21.0% |
- Compute the expected rate of returns for firms x and firm y.
- Compute the standard deviation for firms x and firm y.
- Compute the coefficient of variations for firm x and y.
- As a financial advisor which firm would you recommend for investment.
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