Answer:
(C) Asset Y, since its coefficient of variation is lower and its expected return is higher
Explanation:
Given the various probabilities (P) and returns (R) for Asset X and Asset Y, their expected return is computed as follows.
Asset X = 
= (0.1*-3%) + (0.1*2%) + (0.25*5%) + (0.25*8%) + (0.3*10%)
Expected return (Asset X) = 6.15%
Asset Y = 
= (0.05*-3%) + (0.1*2%) + (0.3*5%) + (0.3*8%) + (0.25*10%)
Expected return (Asset Y) = 6.45%.
Due to its higher expected return, Asset Y should be preferred.
The answer is option C because it contained a statement that Asset Y has a higher expected return.
Option (B) is wrong because we are not certain if Asset Y has a lower beta. We were not given any information to compute the beta.
Options (A), (D) and (E) are wrong because they did not specify Asset Y has the preferred asset.
Answer:
Explanation:
B.)Your annual salary for doing your job.
Answer:
d. $102,250.
Explanation:
The computation of the selling price is shown below:
= Bond face value × quoted price
= $100,000 × 1.0225
= $102,250
To determine the selling price we multiplied the bond face value with the quoted price so that the accurate selling price can come.
We simply fraction the quoted price and then divide it by 100
In mathematically,
= 409 ÷ 4
= 102.25 ÷ 100
= 1.0225