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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given below are likely returns in case of shares of sun ltd and moon ltd.in the various econmic conditions. both shares are presently quoted at rs.100 per share.

econmic condition probability return of sun ltd % return of moon ltd %
higher growth 0.3 100 150
low growth 0.4 110 130
stagnation 0.2 120 90
recession 0.1 140 60

compute expected return and standard deviationfor both stocks and provide suggestionfor suitable investment.

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