6. The probability distribution of the return on an investment in Omega Inc.s common stock follows. Return

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6. The probability distribution of the return on an investment in Omega Inc.’s common stock follows.

Return Probability 5% .05 8 .25 10 .40 12 .25 15 .05 Graph the probability distribution. Calculate the expected return, the standard deviation of the return, and the coefficient of variation. (Notice that to make the calculations manageable, we’ve made the unrealistic assumption that the probability distribution of returns is discrete.)

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Practical Financial Management

ISBN: 9780324422634

5th Edition

Authors: William R. Lasher

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