below information of probabilities and expected returns for 2 securities under 3 possible scenarios. possible outcomes are bullish trend, normal trend and bearish trend. probability for bullish is 0.3, normal 0.4 and bearish 0.3. rate of return for company g bullish is 50% normal 20% and bearish (10)%. company h rate of return for bullish is 25%, normal 15% and bearish 15%. on the basis of expected rate of return, standard deviation, variance and coefficient of variance decide which of the above companies is best for investment (single company risk analysis)
below information of probabilities and expected returns for 2 securities under 3 possible scenarios. possible outcomes are bullish trend, normal trend and bearish trend. probability for bullish is 0.3, normal 0.4 and bearish 0.3. rate of return for company g bullish is 50% normal 20% and bearish (10)%. company h rate of return for bullish is 25%, normal 15% and bearish 15%. on the basis of expected rate of return, standard deviation, variance and coefficient of variance decide which of the above companies is best for investment (single company risk analysis)
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
Problem 1PS
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below information of probabilities and expected returns for 2 securities under 3 possible scenarios. possible outcomes are bullish trend, normal trend and bearish trend. probability for bullish is 0.3, normal 0.4 and bearish 0.3.
(single company risk analysis)
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