P1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. – savvyessaywriters.net | Savvy Essay Writers
P1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. – savvyessaywriters.net | Savvy Essay Writers
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P1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset.AssetAnnual ReturnsA5%,10%,15%,4%B-6%,20%,2%,-5%,10%C12%,15%,17%D10%,-10%,20%,-15%,8%,-7%Asset AAsset BAsset CAsset D5%-6%12%10%10%20%15%-10%15%2%17%20%4%-5%-15%10%8%-7%Average9%4%15%1%Variance0.00260.01190.00060.0186Std. dev5.07%10.92%2.52%13.65%Coeff of var.0.602.600.1713.65P2. Based upon your answers to question 1, which asset appears riskiest based on standard deviation? Based on coefficient of variation?ASSET D appears the riskiest based in standard & coefficient.P3. Recalling the definitions of risk premiums in Chapter 8 and using the Treasury bill return in Table 12.4 as an approximation to the nominal risk-free rate, what is the risk premium from investing in each of the other asset classes listed in Table 12.4?P4. What is the real, or after-inflation, return from each of the asset classes listed in table 12.4?Treasury BillTreasury BondStocksInflation RateAnnual Ave Return3.8%5.4%11.1%3.2%Standard Deviation3.0%7.6%20.4%4.0%
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