The expected value,standard deviation of returns,and coefficient of variation for asset A are ________.(See below.) Asset A
A)10 percent,8 percent,and 1.25,respectively
B)9.33 percent,8 percent,and 2.15,respectively
C)9.35 percent,4.68 percent,and 2.00,respectively
D)9.35 percent,2.76 percent,and 0.295,respectively

Question

The expected value,standard deviation of returns,and coefficient of variation for asset A are ________.(See below.) Asset A 
A)10 percent,8 percent,and 1.25,respectively 
B)9.33 percent,8 percent,and 2.15,respectively 
C)9.35 percent,4.68 percent,and 2.00,respectively 
D)9.35 percent,2.76 percent,and 0.295,respectively

Quizplus · Accepted Answer

Using the data provided in the question, we can calculate the expected value, standard deviation, and coefficient of variation as follows:

Expected value = 8% + 2% = 10%
Standard deviation = SQRT[(0.5*(12%-10%)^2) + (0.5*(8%-10%)^2)] = SQRT[0.02] = 2.76%
Coefficient of variation = (2.76% / 10%) * 100% = 0.295

Therefore, the correct answer is D.

The Expected Value,standard Deviation of Returns,and Coefficient of Variation for Asset