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The probability distributions of expected retums for stock HR and stock LR are as follows: Probability 0.1 0.2 0.4 0.2 0.1 Stock HR (%) (15)
The probability distributions of expected retums for stock HR and stock LR are as follows: Probability 0.1 0.2 0.4 0.2 0.1 Stock HR (%) (15) 0 5 10 25 Stock LR (%) (25) 5 17 30 60 a) Calculate the expected return for stock HR and LR. (3 Marks) b) Calculate the following: i) variances for stock HR and LR. ii) standard deviation for stock HR and LR. III) coefficient of variation for stock HR and LR. (3 Marks) (2 Marks) (2 Marks) c) Which is the riskler of the two stocks? (2 Marks) (Total: 12 Marks)
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