Question
Alibabas stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing
Alibabas stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a 28% return.
a. What is their expected rate of return?
b. What is their standard deviation of returns?
c. What is their coefficient of variation?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
