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.Use the following probability distribution for assets X and Y to answer questions (a) and (b)Compute the expected rate of return, variance, standard deviation, and
.Use the following probability distribution for assets X and Y to answer questions (a) and (b)Compute the expected rate of return, variance, standard deviation, and coefficient of variation for the two assets. Which asset is a better investment? Explain your answer.
X |
| Y | ||
Return | Prob. |
| Return | Prob. |
8% | 0.10 |
| 10% | 0.25 |
9% | 0.20 |
| 11% | 0.35 |
11% | 0.30 |
| 12% | 0.40 |
12% | 0.40 |
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