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9. Risk and Return

9. Risk & Return Situation Situation Probability Returns Recession 0.15 Asset A Asset B Probability Returns Exp Ret Deviation

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Date: Pagen Calculations Asset Kraleoleil rn (int) dx= x-ic Pdac? ce cc) . 1.5 -8.3 - 3 4.7 10.3335 0495 .55 .30 15 6.6270 VAsset B Pralealeility dy=y- 7 Pdy Return (in) 02 •15 .55 .30 -30 18 31 - 44.70 3.30 16.30 299.7135 5.9895 79.7070 Variance (€Asset A Asset B Expected Return 10.30 7. 14.70% Risk 4.12 % 19.63% (Standard Dementian) Cafficient of Variation 40 1.33

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