Expected Return: Discrete Distribution A stocks return has the following distribution: Calculate the stocks expected return and
Question:
Expected Return: Discrete Distribution A stock’s return has the following distribution:
Calculate the stock’s expected return and standard deviation.
Transcribed Image Text:
Demand for the Company's Products Probability of This Demand Occurring Weak 0.1 Below average 0.2 Rate of Return if This Demand Occurs (%) -50% -5 Average 0.4 16 Above average 0.2 25 Strong 0.1 60 1.0
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Related Book For
Intermediate Financial Management
ISBN: 9781337395083
13th Edition
Authors: Eugene F. Brigham, Phillip R. Daves
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