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You are a Senior Portfolio Manager at XYZ Mutual Fund Company. You generally seok higher risk stocks, with strong Beta coetficients that ofler big teturns
You are a Senior Portfolio Manager at XYZ Mutual Fund Company. You generally seok higher risk stocks, with strong Beta coetficients that ofler big teturns albeit with bigger risks. You do not generally invest in companies with a Coefficient of Variation less than .65; You are evaluating a potentially new position in your portfolio. Sigma Corp (SIGM). You review the last 4 years of it's stock price in the public markets and dividends paid, as indicated in the spreadsheet below Here is the data: Year 2019 2020 2021 2022 1. What is the Expected return (avg return) for SIGM over the 4 year period? % (percent) 2. What is the standard deviation for SIGM's returns for the 4 year period? % (percent) 3. What is the Coefficient of Variation for SIGM for the 4 year period? - (decimal) 4. Does SIGM meet your criteria as it relates to Coefficient of Variation? True False
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