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1. EXPECTED RETURN: A stocks returns have the following distributions: Demand for the Companys Products Probability of This Demand Occurring Rate of Return if This
1. EXPECTED RETURN: A stocks returns have the following distributions:
Demand for the Companys Products | Probability of This Demand Occurring | Rate of Return if This Demand Occurs |
Work | 0.1 | (30%) |
Below average | 0.3 | (14) |
Average | 0.3 | 11 |
Above average | 0.3 | 20 |
Strong | 0.2 | 45 |
| 1.0 |
|
Calculate the stocks expected return, standard deviation, and coefficient of variation.
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