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Probability distribution for asset Y

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Given the following probability distribution for asset Y, compute the expected rate of return, variance, standard deviation, and coefficient of variation for the assets.

Y
Return Prob.

10% 0.25
11 0.35
12 0.40.

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Solution Summary

This solution is comprised of a detailed explanation to compute the expected rate of return, variance, standard deviation, and coeffiecient of variation for the assets.

Solution Preview

The expected rate of return is:
m = E(Y) = 10%*0.25 + 11%*0.35 + 12%*0.40 = 0.1115 = ...

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