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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 0.2 (30%)
Below average 0.3 (11)
Average 0.3 11
Above average 0.1 28
Strong 0.1 66
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:

B.

Stocks A and B have the following probability distributions of expected future returns:

Probability A B
0.2 (8%) (23%)
0.2 5 0
0.2 13 22
0.1 23 30
0.3 39 41

Calculate the expected rate of return, , for Stock B ( = 16.00%.) Do not round intermediate calculations. Round your answer to two decimal places. %

Calculate the standard deviation of expected returns, A, for Stock A (B = 23.85%.) Do not round intermediate calculations. Round your answer to two decimal places.

Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.

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