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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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