Question
The following probability distributions of return for Stock Y have been estimated: Probability Stock Y 0.3 3% 0.4 4% 0.3 5% Calculate the expected rate
The following probability distributions of return for Stock Y have been estimated:
Probability | Stock Y |
0.3 | 3% |
0.4 | 4% |
0.3 | 5% |
- Calculate the expected rate of return (), standard deviation (), and the coefficient of variation (CV) for Stock Y.
Based on the calculation of Question I and Question II, which stock is more risky?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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