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QUESTION 3 An investor buys an asset at an initial cost of $20,124,578. The investor believes that at the end of one year, the asset
QUESTION 3 An investor buys an asset at an initial cost of $20,124,578. The investor believes that at the end of one year, the asset could have four possible values. These values and probabilities are provided in the table below. Required Scenario A B C D d. What is the coefficient of variation of this portfolio? (1 mark) Expected value 18,865,000 21,100,770 24,165,000 26,247,000 a. In dollars and cents, what is the expected value of the asset in 1 year? (2 marks) b. In percentage terms to 2 decimal places, what is the expected return on the asset? (1 mark) c. In percentage terms to 2 decimal places, what is the expected standard deviation of the return of the asset? (1 mark) Probability 25% 40% 30% 5% 5 points Save
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