Calculate the expected return. Do not round intermediate calculations. Round your answer to two decimal places.  _______ % Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.  _______ % Calculate the coefficient of variation. Do not round intermediate calculations. Round your answer to two decimal places

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider an investment with the following probability distribution:

 

Probability Payoff
0.35 38.0 %
0.40 -5.0  
0.25 -17.0  

 

  1. Calculate the expected return. Do not round intermediate calculations. Round your answer to two decimal places.

     _______ %

  2. Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.

     _______ %

  3. Calculate the coefficient of variation. Do not round intermediate calculations. Round your answer to two decimal places.

    _______ 

Consider an investment with the following probability distribution:
Probability
Payoff
0.35
38.0%
0.40
-5.0
0.25
-17.0
a. Calculate the expected return. Do not round intermediate calculations. Round your answer to two decimal places.
%
b. Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
%
c. Calculate the coefficient of variation. Do not round intermediate calculations. Round your answer to two decimal places.
Transcribed Image Text:Consider an investment with the following probability distribution: Probability Payoff 0.35 38.0% 0.40 -5.0 0.25 -17.0 a. Calculate the expected return. Do not round intermediate calculations. Round your answer to two decimal places. % b. Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % c. Calculate the coefficient of variation. Do not round intermediate calculations. Round your answer to two decimal places.
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