Analyze investment M and investment J using the below. Scenario Probability M Return J Return Strong .30 18% 20% Normal .30 15% 12% Weak .40 9% 5% 1. What is the range for M? 2. What is the average exp. return for M ? 3. What is the standard deviation* M? 3.85 (given) 4. What is the CV for M? 5. What is the range for J? 6. What is the average exp. return for J? 7. What is the standard deviation J? 6.22 (given) 8. What is the CV for J? 9. Which is the better choice?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter6: Risk And Return
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Analyze investment M and investment J using the below.
Scenario
Probability
M Return J Return
Strong
.30
18%
20%
Normal
.30
15%
12%
Weak
.40
9%
5%
1. What is the range for M?
2. What is the average exp. return for M ?
3. What is the standard deviation* M? 3.85 (given)
4. What is the CV for M?
5. What is the range for J?
6. What is the average exp. return for J?
7. What is the standard deviation J? 6.22 (given)
8. What is the CV for J?
9. Which is the better choice?
Transcribed Image Text:Analyze investment M and investment J using the below. Scenario Probability M Return J Return Strong .30 18% 20% Normal .30 15% 12% Weak .40 9% 5% 1. What is the range for M? 2. What is the average exp. return for M ? 3. What is the standard deviation* M? 3.85 (given) 4. What is the CV for M? 5. What is the range for J? 6. What is the average exp. return for J? 7. What is the standard deviation J? 6.22 (given) 8. What is the CV for J? 9. Which is the better choice?
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