What is the difference between realized rate of

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5. What is the difference between realized rate of return and required rate of return?
TUNKU ABDUL RAHMAN UNIVERSITY COLLEGEFACULTY OF ACCOUNTING, FINANCE AND BUSINESS
b. which stock is riskier than the other stock?
7. A stock’s returns have the following distributionDemand for company productprobability of this demandrate of returnWeak10%(50%)Below average20%(5%)Average40%16%Above average20%25%Strong10%60%_____100%Calculate the stock’s expected return, standard deviation and coefficient of variation
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TUNKU ABDUL RAHMAN UNIVERSITY COLLEGEFACULTY OF ACCOUNTING, FINANCE AND BUSINESSSamson, the financial manager for A2A Corporation, wishes to evaluate three prospectiveinvestments: X, Y, and Z. Currently, the firm earns 12% on its investments, which have a riskindex of 6%. The expected return and expected risk of the investments are as follows:InvestmentExpected ReturnExpected RiskX14%7%Y12%8%Z10%9%If Samson were risk-indifferent, which investments would he select? Explain why.If he were risk-averse, which investments would he select? Why?If he were risk-seeking, which investments would he select? Why?Given the traditional risk preference behavior exhibited by financial managers, which investment would be preferred? Why?

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