Question :Risk and Return, Coefficient of Variation
Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.
Std Dev. Exp. Return
company A 7.4 13.2
company B 11.6 18.9
Question 2
Holding Period Return
Based on the following information calculate the holding period return:
P0= $11.00
P1= $11.40
D1= $1.02
Question 3
Risk and return and the CAPM based on the following information, calculate the required return based o the CAPM:
risk free rate= 3%
market return = 10.5%
Beta = 1.2