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Q3) a) Mr. Ansari is trying to decide whether invest in Stock A or stock B. His broker has given him the following data: (3)
Q3) a) Mr. Ansari is trying to decide whether invest in Stock A or stock B. His broker has given him the following data: (3) S. Probability Possible Possible No. Return of Return of Stock A Stock B 1 0.16 0.25 0.35 2 0.24 0.35 -0.12 3 0.4 0.18 0.28 Calculate standard deviation and coefficient of variation for Mr. Ansari. II b) Explain the difference of standard deviation and coefficient of variation to Mr. Ansari? (1) c) Explain the results obtained in case A to Mr. Ansari and give your recommendation for investment with justification. (1) d) If Mr. Ansari decides to invest equal amount in both the securities then calculate the expected return of Mr. Ansari's portfolio. (1)
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