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A company believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? (Use 3 decimal points
A company believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? (Use 3 decimal points in your calculations)
Probability Stock's
State of of State Expected
the Economy Occurring Return
Boom 0.35 21.5%
Normal 0.40 14.5%
Recession 0.25 -8.5%
1.078 | ||
0.958 | ||
0.785 | ||
1.051 | ||
0.865 |
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