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Sangam, an investor advisor is considering two possible investments. Information about the investments as follows: Investment A Investment B Probability 0.30 Return (%) -2.5
Sangam, an investor advisor is considering two possible investments. Information about the investments as follows: Investment A Investment B Probability 0.30 Return (%) -2.5 Probability Return (%) 0.35 -2.5 0.30 9 0.35 9 0.40 12 0.30 12 a) Define expected return and variance. b) Calculate the following for both companies: i. Expected return ii. Variance and standard deviation iii. Coefficient of variation c) Which investment should Sangam choose?
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a Definitions Expected Return The expected return is the average or mean return that an investor can ...Get Instant Access to Expert-Tailored Solutions
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