Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
Question
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Chapter 8, Problem 8.14P

a)

Summary Introduction

To discuss:

Average return of different portfolio alternatives.

Introduction:

Portfolio return: In financial context; portfolio return is seen as percentage that represents the profit on a portfolio of investments.

b)

Summary Introduction

To discuss:

Standard deviation.

Introduction:

Return: In financial context, return is seen as percentage that represents the profit in an investment.

Portfolio refers to a set of financial investments such as debentures, stocks, bonds and mutual funds owned by the investor.

Risk: The risk can be defined as the uncertainty attached to an event such as investment where there is some amount of risk associated to it as there can be either gain or loss.

The standard deviation measures the volatility of the stock. It measures in absolute terms the dispersion of asset risk around its mean.

c)

Summary Introduction

To discuss:

Coefficient of variation.

Introduction:

The coefficient of variation is an asset risk indicator that measures the relative dispersion. It describes the volatility of asset returns relative to its mean or expected return.

d)

Summary Introduction

To discuss:

Performance of portfolio.

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Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)

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