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[BUSINESS] You are working on the launch of a critical new product at your company. You have estimated the probability of success and potential impacts
[BUSINESS]
You are working on the launch of a critical new product at your company. You have estimated the probability of success and potential impacts on the stock price over the next year. If the risk-free rate is 2% and the standard deviation is 19.2%, then whats the CV and Sharpe Ratio? All else equal, would you prefer a higher CV?
Product Launch Outcome | Outcome Probability | Stock Rate Outcome |
Poor | 10% | -40% |
Mediocre | 30% | 8% |
Good | 40% | 18% |
Awesome | 20% | 32% |
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