Risk Averse Investor Assignment
Information
Average monthly return for company BGP and AIA for the past 10 years:
BGP: 1.47% AIA: 1.74%
The standard deviation of these returns for BPG and AIA for the past 10 years
BGP: 5.15% AIA: 4.59%
Coefficient of variation of these returns for BPG and AIA for the past 10 years
BGP: 3.50 AIA: 2.64
Slope coefficient (Beta) for BRG and AIA
BGP: 0.37 AIA: 1.05
Question: If you were a “risk averse” investor but only wanted to own one company’s shares, which of these two shares would you prefer to own? Why?
Options:
BGP because it has the highest average return
AIA because it has the lowest coefficient of variation
BGP because it has a higher standard deviation of returns
BGP because it has the highest coefficient of variation
AIA because it has the lowest volatility of returns
AIA because it has the highest average return. Get Finance homework help today