Q3 Consider the following information related to stock returns of a company: Year Probability Return 2016 15% 0.1 2017 11.5% 0.2 2018 12% 0.15 2019 13.75% 0.25 2020 10% 0.3 i. You are required to calculated the expected return of the above data. ii. Also calculate the risk associated to relevant stock. iii. Interpret your result through coefficient of variance.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
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Q3
Consider the following information related to stock returns of a company :
Probability
Year
Return
2016
15%
0.1
2017
11.5%
0.2
2018
12%
0.15
2019
13.75%
0.25
2020
10%
0.3
i. You are required to calculated the expected return of the above data.
ii. Also calculate the risk associated to relevant stock.
iii. Interpret your result through coefficient of variance.
Transcribed Image Text:Q3 Consider the following information related to stock returns of a company : Probability Year Return 2016 15% 0.1 2017 11.5% 0.2 2018 12% 0.15 2019 13.75% 0.25 2020 10% 0.3 i. You are required to calculated the expected return of the above data. ii. Also calculate the risk associated to relevant stock. iii. Interpret your result through coefficient of variance.
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