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The following information relates to the forecasted returns of securities A and B and their probabilities during the financial year ending 30 April 2022. Probability ...

      

The following information relates to the forecasted returns of securities A and B and their probabilities during the financial year ending 30 April 2022.
Probability Forecasted returns
A (%) B (%)
0.15 10 8
0.20 12 10
0.10 8 7
0.15 15 12
0.25 14 10
0.15 9 8

Required:
(i) The expected return of security A and security B.
(ii) The standard deviation of security A and security B.
(iii) Advise a potential investor on the security to invest in using relative risk.

  

Answers


Francis
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francis1897 answered the question on November 1, 2022 at 12:49


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