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A stock's returns have the following distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak
A stock's returns have the following distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (34%) Below average 0.2 (10) Average 0.3 17 Above average 0.3 25 Strong 0.1 65 1.0
Assume the risk-free rate is 3%. Calculate the
a. stock's expected return,
b. standard deviation,
c. coefficient of variation,
d. Sharpe ratio. :
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