Consider an investment with the following probability distribution:   Probability Payoff 0.40 30.0 % 0.35 -4.0   0.25 -14.0     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.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 3Q: Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation...
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Consider an investment with the following probability distribution:

 

Probability Payoff
0.40 30.0 %
0.35 -4.0  
0.25 -14.0  

 

  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. 

     

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