Cakulate the expected rate of return for each stack, (2 decimal places Stock A Fapected Retum Stock B Fapected Raturn Cakulate the standard deviation of expected returm, for each wock (2 decimal places) Stock A Sianderd Deviation Stock B Standard Deviation Now calculate the coeflicient of variation fur each vock (2 decimal places) Stock A Coeliciert of Variation Stock B Coucient of Veriation

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Q1

Stocks A and B have the fallowing probability distributions of espected future returns:
A
Probability
0.1
(10N) (a5)
0.2
2
0.4
12
20
0.2
20
25
0.1
38
45
Cakulate the cxpected rate of return for each stck. (2 decimal) places
Stock A Expected Return
Stock B Expected Return
Cakulate the standard deviation of expected returm, for each stock (2 decimal places)
Stock A Standard Deviation
Stock 8 Standard Deviation
Now caltulate the coeflicient of variation for each stock (2 decimal places)
Stock A Coefficient of Variation
Stock B Couficient of Variation
Assume the risk-free rate is 25. What are the Sharpe ratias for Stocks A and B? (4 decimal places)
Stock A Sharpe Ratio
Stock B Sharpe Ratio
Transcribed Image Text:Stocks A and B have the fallowing probability distributions of espected future returns: A Probability 0.1 (10N) (a5) 0.2 2 0.4 12 20 0.2 20 25 0.1 38 45 Cakulate the cxpected rate of return for each stck. (2 decimal) places Stock A Expected Return Stock B Expected Return Cakulate the standard deviation of expected returm, for each stock (2 decimal places) Stock A Standard Deviation Stock 8 Standard Deviation Now caltulate the coeflicient of variation for each stock (2 decimal places) Stock A Coefficient of Variation Stock B Couficient of Variation Assume the risk-free rate is 25. What are the Sharpe ratias for Stocks A and B? (4 decimal places) Stock A Sharpe Ratio Stock B Sharpe Ratio
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