Question
A stock's return has the following distribution: Calculate the stock's expected return and standard deviation Demand for the Company's Product Probability of this Demand Occurring
A stock's return has the following distribution:
Calculate the stock's expected return and standard deviation
Demand for the Company's Product |
| Probability of this Demand Occurring |
| Rate of Return If this Demand Occurs (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weak |
|
| 0.1 |
|
| -50% |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below Average |
| 0.2 |
|
| -5 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
|
| 0.4 |
|
| 16 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Above Average |
| 0.2 |
|
| 25 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strong |
|
| 0.1 |
|
| 60 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| 1.0 |
|
|
| A stock's return has the following distribution:
Calculate the stock's expected return and standard deviation
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started