An investor holds a porfolio of stocks and is consider in, Ask an Expert

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An investor holds a porfolio of stocks and is consider in investing in the DBB Company. The firm's prospects look neutral and you estimate the following probability distribution of possible returns.

Returns on DVI P Returns On DBB

-5% 0.10 -40%

3% 0.20 -10%

8% 0.40 20%

10% 0.20 32%

12% 0.10 45%

How much is the coefficient of variation for the new portfolio?

Do you consider this portfolio more or less risky than the individual stocks?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91594952

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