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1 . A stock has the following probability distribution: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

1. A stock has the following probability distribution:
_________________________________________________________________
Demand for the Probability of This Rate of Return If This
Companys Products Demand Occurring Demand Occurs
__________________________________________________________________
Weak 0.100.15(or 15%)
Below Average 0.150.10(or 10%)
Average 0.500.15(or 15%)
Above Average 0.200.25(or 25%)
Strong 0.050.30(or 30%)
__________________________________________________________________
Calculate the stocks expected return, variance of returns, standard deviation of returns, and coefficient of variation of returns. Use at least seven decimal places to compute variance and standard deviation to avoid significant rounding errors.

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