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TJackCarr
Mar 29, 2008, 01:28 PM
Returns
Probability--Investment A-------Investment B----------Investment C
0.1... -22.00%... -13.00%... -10%
0.2... -2.00... 1.00... 2.00
0.4... 20.00... 15.00... 12.00
0.2... 35.00... 29.00... 20.00
0.1... 50.00... 43.00... 38.00

1. Find the expected return for each investment.
2. Find the standard deviation for each investment.
3. Find the coefficient of variation for each investment.
4. Does one investment represent a better risk/return trade-off? Explain.

morgaine300
Mar 30, 2008, 10:23 PM
Please see for info about posting homework problems.

https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

Also you need to realize that different books can have different equations for standard deviation and especially for coefficient.

TJackCarr
Mar 31, 2008, 10:18 AM
Please see for info about posting homework problems.

https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

Also you need to realize that different books can have different equations for standard deviation and especially for coefficient.


This was not a homework problem... we had to make our own problem up and the professor would inturn choose for the 36 questions we gave. My buddy said that it was confusing and hard to answer. I wanted to see if it was. So you don't need to answer just tell me if there is enough information to answer the questions.

Thanks

morgaine300
Apr 3, 2008, 12:00 AM
My buddy said that it was confusing and hard to answer. I wanted to see if it was. So you don't need to answer just tell me if there is enough information to answer the questions.

Thanks

Sure there's enough info. To get that stuff you only need a frequency with which each happens (or a proportion one like you have it), which can get you an expected value. With that you can get a standard deviation. And with those two you can get the coefficient.

And whether it's confusing or not depends on what class this is for. I never learned this in finance and it might be complicated for that class. For statistics, it's fairly basic stuff.