Question No: 02 Mr. Ramesh Rao is planning to purchase the shares of common stock...

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Question No: 02 Mr. Ramesh Rao is planning to purchase the shares of common stock of Tata Motors Limited. His rate of retum expectations for Tata Motors stock are as follows: Rate of Probability Return -14% 20% 0% 12% 15% 28% 27% 40% Based on the above information answer the following questions: a. Compute the expected return on Mr. Rao's investment in Tata Motors stock? [1] b. Compute the standard deviation on Mr. Rao's investment in Tata Motors stock? [2] C. Compute the coefficient of variation on Mr. Rao's investment in Tata Motors stock? [1] d. Compare and contrast standard deviation vs. coefficient of variation and explain succinctly as to when it is anpropriate to use

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