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The table below gives the probability of different returns for three different assets. Using this table, calculate the following: The expected return of each asset
The table below gives the probability of different returns for three different assets. Using this table, calculate the following:
The expected return of each asset
The standard deviation of returns of each asset
The coefficient of variation of each asset
Based on your answers to B) and C) above, which asset has the highest total risk and highest relative risk?
Asset A
Probability Return
0.3 5
0.4 8
0.3 9
Asset B
Probability Return
0.1 25
0.3 20
0.5 15
0.1 14
Asset C
Probability Return
0.1 4
0.8 5
0.1 6
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