Question
Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's
Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point:
a.Compute the range of possible rates of return.
b.Compute the expected return.
c.Compute the standard deviation of the returns.
d.Compute the coefficient of variation of the returns.
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Part 1
a.The range of possible rates of return is ____%(Round to the nearest whole number.)
Rate of return | Probability |
15% | 0.05 |
20% | 0.10 |
25% | 0.15 |
30% | 0.05 |
35% | 0.35 |
40% | 0.10 |
45% | 0.10 |
50% | 0.05 |
55% | 0.05 |
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