Matthew would like to invest in gold and is aware that the returns on such an investment can be quite volatile. Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, e.g. 0.07680.) Probability Return Boom 0.1 40% Good 0.2 17% Ok 0.3 13% Level 0.2 5% Slump 0.2 -20%
Matthew would like to invest in gold and is aware that the returns on such an investment can be quite volatile. Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, e.g. 0.07680.) Probability Return Boom 0.1 40% Good 0.2 17% Ok 0.3 13% Level 0.2 5% Slump 0.2 -20%
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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Matthew would like to invest in gold and is aware that the returns on such an investment can be quite volatile.
Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, e.g. 0.07680.)
| Probability | Return |
|
Boom
|
0.1 | 40% |
|---|---|---|
|
Good
|
0.2 | 17% |
|
Ok
|
0.3 | 13% |
|
Level
|
0.2 | 5% |
|
Slump
|
0.2 | -20% |
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