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(urgent) Subject :investment analysis Your broker estimates the following probabilities of return of the two shares that you are interested to invest based on the
(urgent) Subject :investment analysis
Your broker estimates the following probabilities of return of the two shares that you are interested to invest based on the state of the economy:
state | probability | Return On Share A | Return on Share B |
1 | 0.2 | 0.2 | (0.1) |
2 | 0.2 | 0.1 | 0.2 |
3 | 0.4 | 0.15 | 0.1 |
4 | 0.2 | 0.05 | 0.5 |
REQUIRED: a) Calculate the expected return for each share. b) Calculate the standard deviation for each share. c) Calculate the co variance for each share. d) In your opinion, which share is better to invest. Justify your answer.
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