Risk and Return Illustration 24


0
5 comments

The rate of return on stocks of Ben and Ten under different states of the economy are presented below along with the probability of the occurrence of each state of the economy.

Advertisement

 

Particulars

Boom

Normal

Recession

Probability of occurrence

0.3

0.5

0.2

Rate of Return on Stock Ben (%)

25

35

45

Rate of Return on Stock Ben (%)

45

35

25

 

(i)     Calculate the expected rate of return and standard deviation of return on stock Ben and Ten.

(ii)   If you could invest in either stock Ben or stock Ten, but not in both, which stock would you prefer?

 

Advertisement
The following two tabs change content below.

Score Tutorial

S’COrE Education is a professional coaching institute to coach for new generation courses. S’COrE has highly experienced faculty with enormous experience and achievement in teaching and industry. We teach each subject in such a manner that even complicated subject feels simple. This helps student to S’COrE-the-Max. Since 1998 S’COrE had university toppers accross courses and subjects. Once you are our student you will also believe S’COrE - the - Best !!

Like it? Share with your friends!

0
5 comments
Score Tutorial
S’COrE Education is a professional coaching institute to coach for new generation courses. S’COrE has highly experienced faculty with enormous experience and achievement in teaching and industry. We teach each subject in such a manner that even complicated subject feels simple. This helps student to S’COrE-the-Max. Since 1998 S’COrE had university toppers accross courses and subjects. Once you are our student you will also believe S’COrE - the - Best !!

5 Comments

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format