How much is the coefficient of variation for DBB

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Reference no: EM13921062

An investor holds a porfolio of stocks and is considering 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%

A) How much is the expected return for DBB?

B) How much is the coefficient of variation for DBB?

C) 99.73% of the time in what range (what specific values) would you expect the returns for DBB? Use the empirical rule?

D) Add DVI to your portfolo, You sell 30% of DBB to purchase DVI. How much is the expected return for this portfolio?

Reference no: EM13921062

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