. Find the Expected Return, Variance, and Standard Deviation for the Stock Returns 1 and 2. Also, you are requested to find the Covariance and Coefficient of Variation with the following information. Probability Stock -1 Stock - 2 42% 01% 09% 0.22 04% 39% 0.05 38% 47% 31% 41% 18%

. Find the Expected Return, Variance, and Standard Deviation for the Stock Returns 1 and 2. Also, you are requested to find the Covariance and Coefficient of Variation with the following information. Probability Stock -1 Stock - 2 42% 01% 09% 0.22 04% 39% 0.05 38% 47% 31% 41% 18%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 6PROB

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Question

plz solve!!!

„Find the Expected Return, Variance, and Standard Deviation for the Stock Returns 1 and
2. Also, you are requested to find the Covariance and Coefficient of Variation with the
following information.
Probability
Stock -1
Stock - 2
01%
42%
09%
0.22
04%
39%
0.05
38%
47%
31%
41%
18%

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Step 1 Expected returns of Stock 1

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Step 2 Expected returns of Stock 2

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Step 3 Variance of Stock 1 and Stock 2

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Step 4 Standard Deviation of Stock 1 and Stock 2 returns

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Step 5 Covariance of Stock 1 and 2.

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Step 6 Coefficient of variation for Stock 1 and 2

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