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 |
|
|
|
|
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
Derivatives And Internal Models
Authors: H. Deutsch
4th Edition
1349307661, 9781349307661
