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# hi can i get help on parts C+D on the attached question please........... thanks

hi can i get help on parts C+D on the attached question please...........

thanks

FINAL ASSIGNMENT RE SUMBITTING : DUE BY 26TH AUGUST 2016 Your Task QUESTION 1 The managing partner for Westwood One Investment Managers Inc. gave a public seminar in which she discussed a number of issues, including investment risk analysis. In that seminar, she reminded people that the coeFcient of varia±on can o²en be used as a measure of risk of an investment. To demonstrate her point of view, she used two hypothe±cal stocks as examples. She let x equal the change in assets for a \$1,000.00 investment in stock1 and y re³ect the change in assets for a \$1,000.00 investment in stock2. She showed the seminar par±cipants the following probability distribu±ons: x P(x) y -1000 10% -1000 0 10% 0 500 30% 500 1000 30% 1000 2000 20% 2000 sample mean 500 sample mean 500 (2 marks) expected value of x = 750 expected value of y = 100 (3 marks) frst compute variance x = 0.10(-1000-750)^2 0.10(0-750)^2 0.30(500-750)^2 0.30(1000-750)^2 0.20(2000-750)^2 y = 0.20(-1000-100)^2 0.40(0-100)^2 0.30(500-100)^2 0.05(1000-100)^2 0.05(2000-100)^2 sample std dev = sx = 844.10 sample std dev = sy = 717.64 (2 marks) a. Compute the expected values for the random variables x and y. b . Compute the standard devia±ons for the random variables x and y. c. Compute the coeFcient of varia±on for each random variable.
stock was riskier since its standard deviaTon was greater than the standard deviaTon of the second stock. How would you respond to her asserTon? (3 marks) d. Referring to part c, suppose the seminar director said that the Frst
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part c answer attached part d:Seminar director said that the first stock was riskier since its standard deviation was... View the full answer

• thank you :)
• mvirdee
• Jul 21, 2016 at 4:20am
• welcome
• faymahaga
• Jul 21, 2016 at 4:25am
• hi i have one more question... i just put up........thank you :)
• mvirdee
• Jul 21, 2016 at 4:48am

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