Bill Broodiest, star quarterback for the Spring Bay Smashers, would like to invest a small portion of his earnings in stocks of one of three firms. His estimated returns and the probabilities of their occurrence follow.
a) Calculate the expected return for each stock.
b) Calculate the coefficient of variation for each stock.
c) Rank the three from the least risky to the most risky.
d) Which stock would you recommend to Bill?

Question

Bill Broodiest, star quarterback for the Spring Bay Smashers, would like to invest a small portion of his earnings in stocks of one of three firms. His estimated returns and the probabilities of their occurrence follow.  
a) Calculate the expected return for each stock.
b) Calculate the coefficient of variation for each stock.
c) Rank the three from the least risky to the most risky.
d) Which stock would you recommend to Bill?

Quizplus · Accepted Answer

The Answer of Bill Broodiest, star quarterback for the Spring Bay Smashers, would like to invest a small portion of his earnings in stocks of one of three firms. His estimated returns and the probabilities of their occurrence follow.  
a) Calculate the expected return for each stock.
b) Calculate the coefficient of variation for each stock.
c) Rank the three from the least risky to the most risky.
d) Which stock would you recommend to Bill?

Bill Broodiest, Star Quarterback for the Spring Bay Smashers, Would