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that (1) while ASA robotics was started 40 years ago, its common stock has been publicly traded for the past 35 years, and (2) the
that (1) while ASA robotics was started 40 years ago, its common stock has been publicly traded for the past 35 years, and (2) the returns are calculated as arithmetic returns. Stock Returns: 2006 (18.75%); 2007 (12.75%); 2008 (22.50%); 2009 (31.50%); 2010 (9.75%) What was the average realized return on ASA Robotics Inc.'s stock from 2006 to 2010? (a. 38.10, b. 19.05, c. 47.63, d. 59.06) Based on the sample data from 2006 to 2010, what is the standard deviation of ASA Robotics Inc.'s returns? (a. 11.56, b. 6.59, c. 7.66, d. 8.56) If investors expect the average realized return on ASA Robotics Inc.'s stock from 2006 to 2010 to continue in the future, what will be its coefficient of variation (CV)? (a. 0.52, b. 0.83, c. 0.45, d. 0.38) Suppose you need to invest $10,000 in ASA Robotics Inc. or another company called Robonomics Inc. You know that Robonomics Inc. has a coefficient of variation of 0.90 and you calculated the coefficient of variation for ASA Robotics Inc. In order to make your investment decision you spend some time in analyzing the situation and drawing conclusions. Based on your conclusions, which of the following statements is true? A. Robonomics Inc. has more risk per unit of return than ASA Robotics Inc. B. ASA Robotics Inc. has more risk per unit of return than Robonomics Inc
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