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Use excel in all of the problems 6) An investor holds a portfolio of stocks and is considering investing in the DBB Company The firm's
Use excel in all of the problems 6) An investor holds a portfolio of stocks and is considering investing in the DBB Company The firm's prospects look neutral and you estimate the following probability distribution of possible returns: Conditions Recession Below Average Average Above Average Boom Returns on DBB -30% -15% 15% 28% 40% 0.10 0.20 0.40 0.20 0.10 Returns on DVI -15% 0% 8% 20% 22% a)How much is the expected return for DBB? b)How much is the coefficient of variation for DBB? 99.73% of the time in what range (what specific values) would you expect the returns for DBB? Use the Empirical Rule
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