The possible returns and associated probabilities of two shares, A and B Share A Share B RA (%) RB (%) 12 PA PB 0.05 0.25 0.40 0.05 0.25 0.40 0.25 0.05 10 15 18 22 28 0.25 25 32 0.05 30 38 1.00 1.00 Calculate expected return and Risk

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
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Question two
The possible returns and associated probabilities of two shares, A and B
Share A
Share B
РА
RA (%)
PB
RB (%)
0.05
0.25
0.40
10
0.05
12
15
0.25
18
22
0.40
28
0.25
25
0.25
32
0.05
30
0.05
38
1.00
1.00
Calculate expected retum and Risk
Transcribed Image Text:Question two The possible returns and associated probabilities of two shares, A and B Share A Share B РА RA (%) PB RB (%) 0.05 0.25 0.40 10 0.05 12 15 0.25 18 22 0.40 28 0.25 25 0.25 32 0.05 30 0.05 38 1.00 1.00 Calculate expected retum and Risk
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