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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 (40%)
Below average 0.1 (14)
Average 0.3 16
Above average 0.3 24
Strong 0.2 46
1.0

Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Stock's expected return: %

image text in transcribed

Standard deviation: %

Coefficient of variation:

Sharpe ratio:

eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Average Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.1 (40%) 0.3 0.3 Above average Strong 0.2 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio

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