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Assignment Risk and Diversification
Assignment Risk and Diversification Assume that you are investing in a 401(k) that currently consists only of U.S. Treasury Bills, and that you’ve decided to diversify. Like any investor, you want to maximize your return while minimizing risk. Calculate the arithmetic average, the variance, standard deviation and coefficient of variation for each of the following stocks: Year Stock A Stock B 2007 8.1% 7.2% 2006 2.6% -3.4 2005 -4.3% 1.0% 2004 -5.0% 2.5% 2003 15.0% 3.1% 2002 3.7% 1.9% Stock A Stock B Average return Variance Standard Deviation Coefficient of Variation Summarize your findings, and explain why you would choose one stock over the other to add to your 401(k). Include in your summary an explanation of diversification, and a discussion of systematic and unsystematic risk. Business Assignment Help, Business Homework help, Business Study Help, Business Course Help
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17 Dec 2015
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Assignment Risk and Diversification
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