Question
1. Iron Works faces the following probability distribution: Stocks Expected State of Probability of Return if this the Economy State Occurring State Occurs Boom 0.25
1. Iron Works faces the following probability distribution:
Stocks Expected
State of Probability of Return if this
the Economy State Occurring State Occurs
Boom 0.25 25%
Normal 0.50 15
Recession 0.25 5
What is the coefficient of variation on the companys stock?
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
