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An analyst has estimated how a particular stocks return will vary depending on what will happen to the economy. What is the coefficient of variation
An analyst has estimated how a particular stocks return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock?
OF THE ECONOMY | PROBABILITY OF STATE OCCURRING | STOCK'S EXPECTED RATE IF THIS STATE OCCURS |
Recession Below Average Average Above Average Boom | .10 .20 .40 .20 .10 | (.60) (.10) .15 .40 .60 |
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