Assume that Conrado Corporation is considering the possible rates of return it might earn next year on a P100,000 investment on the stocks of Buenos Aires or a P75,000 on those of Jessa. The future...


Assume that Conrado Corporation is considering the possible rates of return it might earn next year on<br>a P100,000 investment on the stocks of Buenos Aires or a P75,000 on those of Jessa. The future returns<br>3.2<br>depend on the state of the economy with their corresponding probability distribution.<br>Stock Jessa<br>Return (r)<br>Stock Buenos Aires<br>State of Economy<br>Bad<br>Probability (p)<br>Probability (p)<br>20%<br>Return (r)<br>-8%<br>15%<br>-10%<br>Normal<br>15%<br>70%<br>20%<br>80%<br>Good<br>35%<br>15%<br>40%<br>20%<br>1. What is the Expected Return of Stock Buenos Aires?<br>2. What is the Expected Return of Stock Jessa?<br>3. What is the Variance of Stock Buenos Aires?<br>4. What is the Variance of Stock Jessa?<br>5. What is the Standard Deviation of Stock Buenos Aires?<br>6. What is the Standard Deviation of Stock Jessa?<br>7. What is the Coefficient of Variation of Stock Buenos Aires?<br>8. What is the Coefficient of Variation of Stock Jessa?<br>

Extracted text: Assume that Conrado Corporation is considering the possible rates of return it might earn next year on a P100,000 investment on the stocks of Buenos Aires or a P75,000 on those of Jessa. The future returns 3.2 depend on the state of the economy with their corresponding probability distribution. Stock Jessa Return (r) Stock Buenos Aires State of Economy Bad Probability (p) Probability (p) 20% Return (r) -8% 15% -10% Normal 15% 70% 20% 80% Good 35% 15% 40% 20% 1. What is the Expected Return of Stock Buenos Aires? 2. What is the Expected Return of Stock Jessa? 3. What is the Variance of Stock Buenos Aires? 4. What is the Variance of Stock Jessa? 5. What is the Standard Deviation of Stock Buenos Aires? 6. What is the Standard Deviation of Stock Jessa? 7. What is the Coefficient of Variation of Stock Buenos Aires? 8. What is the Coefficient of Variation of Stock Jessa?

Jun 08, 2022
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