Alternate & Co is attempting to choose the best of two alternatives asset investment A and B, each requiring an initial investment of RM10000 and both having most likely, optimistic and pessimistic rate of return as shown in the table below. Calculate the following from the data given below. i. Expected rate of return for Asset A & B ii. Variance for Asset A & B iii. Standard deviation for Asset A & B iv. Coefficient of variation for Asset A & B v. Which of the asset is more risky? Asset A Rm10000 Asset B Initial Investment RM10000 Probability of this event occurring |(2) 0.25 Possible Annual rate of return Annual rate of return outcomes (3) (5) (1) Pessimistic 13% 7% 15% Most likely Optimistic 0.50 15% 0.25 17% 23% 1.0
Alternate & Co is attempting to choose the best of two alternatives asset investment A and B, each requiring an initial investment of RM10000 and both having most likely, optimistic and pessimistic rate of return as shown in the table below. Calculate the following from the data given below. i. Expected rate of return for Asset A & B ii. Variance for Asset A & B iii. Standard deviation for Asset A & B iv. Coefficient of variation for Asset A & B v. Which of the asset is more risky? Asset A Rm10000 Asset B Initial Investment RM10000 Probability of this event occurring |(2) 0.25 Possible Annual rate of return Annual rate of return outcomes (3) (5) (1) Pessimistic 13% 7% 15% Most likely Optimistic 0.50 15% 0.25 17% 23% 1.0
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
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