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A stocks returns have the following distribution: Demand for the Companys Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak
A stocks returns have the following distribution: Demand for the Companys Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (30%) Below average 0.1 (14) Average 0.3 11 Above average 0.3 20 Strong 0.2 45 1.0 Assume the risk-free rate is 2%. Calculate the stocks expected return, standard deviation, coefficient of variation, and Sharpe ratio.
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