Which investment is less risky based solely

Assignment Help Finance Basics
Reference no: EM131106849

The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard deviation of the first investment's return is 10%; the second investment's return has a standard deviation of 5%. Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given that the expected returns of the two investments are not the same?

Reference no: EM131106849

Questions Cloud

What leadership style you would implement in your business : Copy and paste your agenda from the lesson here. Then, explain what leadership style you would implement in your business meeting and why
Calculate the required rate of return : Calculate the required rate of return for an asset that has a beta of 1.8, given a risk-free rate of 5% and a market return of 10%.If investors have become more risk-averse due to recent geopolitical events, and the market return rises to 13%, what i..
Identify via an internet search a real-life example : Identify via an internet search a real-life example of each of the 10 essential services. (The example may be a program, initiative, or service of a government agency, community service agency, non-profit organization, or community action group.)
What is the expected return of the portfolio : Your portfolio has three asset classes. U.S. government T-bills account for 45% of the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills, 12.3%..
Which investment is less risky based solely : Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given that the expected returns of the two investments are not the same?
Involving one of these four construction hazard categories : The assignment is to write a research paper involving one of these four construction hazard categories. You may narrow your topic down to a more specific type of accident within the major category.
Defines average customer service and great customer service : What do You think defines average customer service and great customer service? Describe an example of both
What is fluorine chemical''s expected return : you arbitrarily assign probability of being correct of 35%, 5%, 20% and 40%, respectively, to the analysts' forecast. Given these probability what is Fluorine Chemical's expected return for the coming year?
Calculate the steady-state probabilities of the markov chain : Calculate the steady-state probabilities of the Markov chain shown in Fig. P11.4.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd