Question
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 (48%)
Below average 0.1 (15)
Average 0.3 10
Above average 0.3 29
Strong 0.2 54
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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