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Ch 08: Homework Problems - Risk and Rates of Return Back to Assignment Attempts Keep the Highest/2 5. Problem 8.01 (Expected Return) eBook Problem Walk-Through

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Ch 08: Homework Problems - Risk and Rates of Return Back to Assignment Attempts Keep the Highest/2 5. Problem 8.01 (Expected Return) eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Probability of This Rate of Return I Company's Products Demand Occurring This Demand Occurs Weak 0.1 (48%) Below average 0.2 (10) Average 0.3 14 Above average 0.3 21 Strong 59 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: % 0.1 Standard deviation: % Coefficient of variation: Sharpe ratio

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