Question
Ajaccio Company believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? State of the Economy
Ajaccio Company believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
| State of the Economy | Probability of State Occurring | Stock's Expected Return |
| Boom | 0.10 | 25% |
| Normal | 0.50 | 15% |
| Recession | 0.40 | 5% |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
