Solve the followings Estimated S= Probability 0.15 0.55 0.30 % Rate of return 20% T The coefficient
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Solve the followings
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Estimated S= Probability 0.15 0.55 0.30 % Rate of return 20% T The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the standard deviation ✓divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not identical. Quantitative Problem: You are given the following probability distribution for CHC Enterprises: 9 -5 t-1 State of Economy Strong Normal Weak What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 3.48 % (Tt -FAvg)² T-1 What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations. Estimated S= Probability 0.15 0.55 0.30 % Rate of return 20% T The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the standard deviation ✓divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not identical. Quantitative Problem: You are given the following probability distribution for CHC Enterprises: 9 -5 t-1 State of Economy Strong Normal Weak What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 3.48 % (Tt -FAvg)² T-1 What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations. Estimated S= Probability 0.15 0.55 0.30 % Rate of return 20% T The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the standard deviation ✓divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not identical. Quantitative Problem: You are given the following probability distribution for CHC Enterprises: 9 -5 t-1 State of Economy Strong Normal Weak What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 3.48 % (Tt -FAvg)² T-1 What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations.
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To solve the given quantitative problem we need to first calculate the stocks expected return the me... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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