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Author Question: The distributions of rates of return for Companies AA and BB are given below:State ofProbability ... (Read 27 times)

bryantpr01

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Question 1

The coefficient of variation, calculated as the standard deviation of expected returns divided by the expected return, is a standardized measure of the risk per unit of expected return.

◦ true
◦ false

Question 2

The distributions of rates of return for Companies AA and BB are given below:

State of

 

Probability of

   

Economy

 

State Occurring

 AA 

BB

Boom  0.3

30%

 

–10%

Normal  0.5

10%

 

6%

Recession  0.2

–5%

 

65%

We can conclude from the above information that any rational risk-averse investor will add Security AA to a well-diversified portfolio over Security BB.


◦ true
◦ false


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Marked as best answer by bryantpr01 on Aug 7, 2023

mgranuc

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bryantpr01

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


olderstudent

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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