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Your bank has been asked by one of its corporate clients to evaluate the risk and return of two assets, A and B. The firm
Your bank has been asked by one of its corporate clients to evaluate the risk and return of two assets, A and B. The firm is considering adding these assets to its diversified asset portfolio. The annual rate of return and related probabilities have been given below. Asset A Asset B Rate of Return Probability Rate of Return Probability 12% 30% 17% 40% 22% 30% For each asset, compute (a) The expected rate of return (1 Marks) (b) The standard deviation of the expected return (1 Marks) return (c) The coefficient of variation of the (2 Marks)
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