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Scenario Probability Return Boom 30% 16% Normal 45% 11% Bust 25% 8% 5 points: What is XYZs arithmetic mean return? 7 points: What is XYZs
| Scenario | Probability | Return |
| Boom | 30% | 16% |
| Normal | 45% | 11% |
| Bust | 25% | 8% |
- 5 points: What is XYZs arithmetic mean return?
- 7 points: What is XYZs return variance?
- 8 points: Carol has a coefficient of risk aversion of 3.6. What return would a riskless asset have to offer for her to be indifferent between investing her money in XYZ and investing it in this riskless asset?
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Essentials Of Health Care Finance
Authors: William O. Cleverley, Andrew E. Cameron
6th Edition
0763742368, 978-0763742362
