Question
You have estimated the following probability distributions and returns of two stocks: Probability Stock A Stock B 0.3 12% 5% 0.4 8 4 0.3 6
You have estimated the following probability distributions and returns of two stocks:
Probability Stock A Stock B 0.3 12% 5% 0.4 8 4 0.3 6 3
You have also calculated standard deviation of Stock A and B as 2.38% and 0.77%, respectively. What is the coefficient of variation (CV) for the stock that is less risky assuming you use the CV to rank riskiness?
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
