inform: is considering two securiti, tS, A and B, and the we [ State of Economy { ] Rem on Sec | Pessim [Pes / | fom oF) Ca G i 1. Catutate fer nde deviatons ant fe tcl of securities é Retum for stock A_"2 Points" CPE oF o8s.6 YEO So v0.11) = 34 6-9/ Return for stock B "2 Points" © © Prez (60406) +(¢ia «0.4) = 3.64 32=by Standard deviation f(r A)) "2 Points © dae E" “es oo see gt bate wares . a et el ieee 63 (PICK OEY) sn Pr GED 60 8% og S64 GF \a Lay 6.4 OSt6 oe ae tion ee 2 Points" 66 0, 384 2% aatty, ver O46 variation forA "1 Point" ee gis. =O "1 Point” Coefficient of variation for B = ot age oh 6.8_ S$ invested $F andare-tevistia | Ch 22,509 | Ripe Asoo }} Sa} j (etal invest/ = Yooo oe : x tn eb Fee ABS OIE ( psec) ( eae ; * Rs 3 was <6 You pi Te 3.84 By64 4 = = jokin . are od eee Se = 12,52 0.4 P- x = i nef * ioe PE (4.90. 248 | [4 24H) (6,36 | (eens 4) (8) (SB) 25 A ree py CHei, | (REMC —— | Fi eo 5 % : OM | pieert) se Jee, Ove 7 : l 7 fe) EYE 4 & { 4, &4 \6,4F) FAY Kae 4/4. 94 yoda, 4g COV sa 10! aiebetween two asset purchase The annual biven below summarize the firm's analysis, () the expec (b) the stands ation of the expected return (6) the coefficient of variation of the return (4) Which asset should Champion select? prude BES ion TWO: Given the retums of two sto and K in the table bet ‘years. Find the expe viation @Pholding a portfolio of 40% of stock J Woe a 2d return and standard de slo ot) 4, (81K 0.6) = = VAMOS (noo) 5 UNBON ye ge.c) HOSEN) ACU G ¢ a spiel see Yeo, boo y Gor = \500 = 15 TE ce ore! Seay % D/ is \S cs 3 Yo % o % 15 Po > Qo ne / eaB 5) Raw and oF eebiinny. @Q Gees wor Sis Ses WANE (ewe, ® * - cr.or : a = CASK Qo y O.He KAS 40.354330 ; ee (Saute ia {age @AowIb , OSH MIG 4 O.d5n35 aS as + B45 abet) © Come sis conrgeed more TORY Bromanem R leccouse $s hes amich hrder Tame ch cckcounes. They Ramen Pialect ls pense: Hecause Geren s \5 vere oN ond alse pfotides abticher Tom MoonCanea ED © pepet No > Neose Caley Vaart on Tamg ale Ube Sook @ ore gok Mes Ure lowest starter Levees, Tre stontad & neaare fais Yo Atle whe ecoury oth Nhe Vdblitd and the & abthe mvcknest . Lvestes Wodh paler Nahe Nous les Natantin\ and We the Cinel Cer erpie ee vaivaktoes PTOvices aneorare re pres hte Gcount bats aspedds ol vest ordeeces. Peek D haathe lout GY, 30 wis Whe lost ede Aneta ada Jete We QR Qrevded. ®@ KN op. 992% _ oat ola B cg. _ao3a . 0.4560 haa bs) og FE eS Cyn G05 =10, A642 (YE Cine ‘ologee raed sya Ma Me case Wd D NARI nlahematue ecstse SY QTY far Ye Nek amount ER vhs eceach Qteet OLR entred. CV sPredrdhly Se Desh mene ndis Unance eouse ie QSvider @ tawtadied ee Wmensatinny ae Bale. Resa dealt Sor wdestrent meh Wenn R, 8.4) = aaa "ee @)_| Ro ge\ Ea Iv ISe ee ya ee 14.36 Se | AVS se OU re as hue Rene pelea 4,L6d, aus Ao . F238. 6478 = #3), 0.367% CY. Fe Dc\ Sel coi Ce eS) 0.2062 Fast = 4.269 et ® avorag Rew = FI. 3 O [sera SOFA = Voar7 u Ss) eG RGA ee aes ® Cv--< = Se Ea. 3\—=—e @ C= LQ, Si Awa A 2 cox Glo + JOX Yo Oho 4-G54.Jo FOB LIC ca ©. ay) : / Ryd oe GW Wo 4 O1040.30 4-o Qo O30 l Set ©: ( IONS oki reales ac 4 G.den Oe 4 O14 M0 401. 0.20 ~o.d04 10 So ae = ie) GD-0 | Cr 1346 Sovr~a6 ©.0036 &.0eF2 Oar —_G.acaad 4 0.0 O62 ; O.0\a6 © a [Asche &.ay 6.05% ©. OLX a © .Goe\ ©. Cero | @.a\ © .046\ ©: ABRs aes [omaat LNssot 8 6.30 S.chco oo ane @ Coe ©,c02 | S S e ae ; &. dloo eee Be often ° ae eu[EQCWE Face v Axel f= 0.\338 = 3.340 2.04 AxskG 2 6.99% — ott ow Asst WS ote e7 S\oa Nevet f has the \ategat Plahe EI, poe Tas a S.- EB no = (asye. a) 4(@&n0. Nose r ANS H0:) AC Bu= \.de ‘y | @_ cake Bas aher Rak QB-34 > | | CAgm Ge ReEBGRa REY = 64 2408-6) + 44.4 | | We. B+-0.5( 23) | a oo/ d } =e | C= lo+4x(\$-10) me YG, maiDY | M= \Q4 VOIR yay = IR 97, = 54 & Fo (1e.5) ) | = Bu, | a eee CP = Ao stF eri _ ms) | ay a Bolo | 2% | 45 d loioms . & N65 7 aol | 1Rk0.5 Wt. FS Noga, 3 | aa |g KoS0. a5 WKeadoe F \65/. = 165+ 1654 GR igs Ba " F x 6.51 Kosgf a sol e. Deis 16 ¥6.5,-8 « \Wyo5o-# Sef Qort | 1F KOSS BS ISKO.R = Zs \o7 JiR | Rx one. Y * lokow sk \¥1, L IG KRo5o1S Foke Ry we P= VS yey F4 18 Seen lotta iS 4 @ leas S (zoey 18 -1Z.5)2 dass S $} ie eer cease (>) iia= SC0G\6F% =F. algalo= \.dalé