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Question [10 Marks] The probability distribution of the return on an investment in Omegas common stock is as follows: Return (%) Probability 5 0.05 8
Question [10 Marks] The probability distribution of the return on an investment in Omegas common stock is as follows:
Return (%) | Probability |
5 | 0.05 |
8 | 0.25 |
10 | 0.4 |
12 | 0.25 |
15 | 0.05 |
Required 1. Draw a probability distribution curve and comment on its shape. [2] 2. Calculate the expected return, standard deviation of the return, and the coefficient of variation. [8]
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